TMI Blog2013 (8) TMI 1081X X X X Extracts X X X X X X X X Extracts X X X X ..... capital gains and interest income. The case was selected for scrutiny as per Instruction No. 31 of DIT (Systems) by CASS. In response to the notices issued u/s 143(2) and 142(1), the AR of the assessee in support of the value adopted by the assessee as on 01/04/1981 at ₹ 400/- per sq. Yard, filed comparable sale instances located at Nizamshahi Road (Road from Hyderabad General Post Office to Mozamjahi Market) which gives rate of ₹ 450/- and ₹ 446/- per sq.yd respectively. He submitted that the assessee s property was situated just opposite to public gardens and major portion is covered by official buildings only, namely, Police Control Room, Nampally Railway Station, AIR, AP State Secretariat, Aayakar Bhavan, LB Stadium, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sssee carried the matter in appeal before the CIT(A) and besides submitting the written submissions before the CIT(A), the learned AR contended that the market value of the property sold by the assessee would not be less than ₹ 400/- per sq.yd as on 01/04/1981 as determined by the registered valuer. Stating that the AO was not justified in considering the market value of the said property at ₹ 150 per sq.yd as on 01/04/1981 for determining the capital gains, the AR of the assessee requested that the AO may be directed to accept the valuation made by the assessee at the said rate of ₹ 400 per sq.yd as on 01/04/1981, and thus accept the capital gain declared by him. 4. After considering the submissions of the assessee, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y as on 01/04/1981, in view of the decision of the Hon ble Supreme Court in the case reported in [1994] 4 SCC 1995. On a perusa of the said decision in the case of Jawajee Nagnatham Vs. Revenue Divisional Officer, Adilabad, AP Others, it is seen that the Hon ble Supreme Court observed that the basic valuation register prepared and maintained for the purpose of collecting stamp duty has no statutory base or force. The Hon ble Apex Court further observed, it cannot form a foundation to determine the market value mentioned thereunder in instrument brought for registration. In this context, it may be further mentioned that the Hon ble ITAT, Hyderabad Bench, in their decision in the case of G. Vijaya and Others Vs. DCIT [ITA No. 276/Hyd/2003] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hus, to compute accordingly the long term capital gains from the said property, assessable in the hands of the appellant for the AY 2006-07 5. Aggrieved, the revenue is in appeal before us and has raised the following grounds of appeal: 1. The order of the learned CIT(A) is erroneous both in facts and law. 2. The learned CIT(A) ought to have confirmed the Fair Market Value adopted by the Assessing Officer since it is based on Market Value Guidelines Register maintained by the SRO office. 3. The Fair Market Value suggested by the CIT(A) has no base. 6. The learned A.R. relied on the decision of Hon ble Bombay High Court in case of CIT Vs. Raman Kumar Suri, [2013] 81 DTR 33 (Bom.) wherein the Hon ble Court held as fol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the registered valuer would be influenced by vested interest having been chosen by the assessee for the purpose of valuing the property. Therefore, the fair market value has to be based on comparable sale instances. In the case of DCIT vs. Chaturbhuj Vallabhdas HUF, Mumbai Bench 130 ITD 230 it has been concluded that : Reference to Valuation Officer under s. 55A can be made by A.O. ignoring the report of registered valuer regardless of the fact that the fair market value of the property as on 1st April, 1981 as shown by the assessee was more than its real fair market value; valuation report of the DVO is a relevant and admissible evidence on the matter in issue irrespective of illegality of reference made by the A.O. 8. In the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the basis of increase by 40 percent over the average auction rates in Safdarjung Enclave Area, not much reliance can be placed on the valuation report prepared by the registered valuer and partly relied upon by the learned CIT(A). The determination of cost of acquisition of a property is a technical aspect and without having complete facts and details of property, its location, and its surroundings and comparative instances of similarly situate properties, cost of acquisition as on 1.4.1981 cannot be determined in a precise manner. The learned CIT(A) having not adverted to all these aspects now raised, apparently the impugned order suffers from lack of reasoning and is not a speaking order. In view of the foregoing, the matter restored to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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