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TMI Blog2015 (11) TMI 1782X X X X Extracts X X X X X X X X Extracts X X X X ..... pital gain" by taking the deemed sale of consideration of the property at Rs. 2,46,63,105/- on the basis of DVO's report. 2. The assessee in the present case is an individual. During the year under consideration, he sold the house property at 5A, Royd Street, Kolkata-700 016 to M/s. Referral Software Pvt. Ltd. On 23.09.2006 for a consideration of Rs. 1,30,00,000/- and accordingly the capital gain arising from the said sale was offered by him in the return of income filed for the year under consideration on 29.06.2007 declaring total income of Rs. 4,11,012/-. During the course of assessment proceedings, it was noticed by the Assessing Officer from the cross verification made from Registrar of Assurance that the market value of the prope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n which the property was sold. (vi) That you are requested to consider the matter seriously and apply your mind to take the proper valuation as per Income Tax and Wealth Tax Act and rules. (vii) That I have full faith that I, a Senior Citizen of India having an age of 82 years old will get natural justice from the authorities of India". The above explanation offered by the assessee was not found acceptable by the Assessing Officer and by invoking the provision of section 50C, he recomputed the capital gain arising from the sale of property as chargeable to tax by adopting the sale consideration of Rs. 3,17,90,300/- as against Rs. 1,30,00,000/- shown by the assessee. 3. The action of the Assessing Officer in adopting the higher sale co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer in invoking the provision of section 50C and directed the Assessing Officer to substitute the figure of deemed sale consideration as adopted on the basis of DVO's report at Rs. 2,46,63,105/- being the estimated fair market value of the assessee's property on the date of sale. Aggrieved by the order of the ld. CIT(Appeals), the assessee has come in appeal before the Tribunal. 4. The ld. Counsel for the assessee at the time of hearing before us raised only one contention that while determining the fair market value of the assessee's property, the portion occupied by the tenant is valued by the DVO by adopting the rent capitalisation method and taking the fair market rent of Rs. 1,83,590/- as against the actual r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the valuation of the portion occupied by tenant should be determined by applying the rent capitalization method taking the rent actually received by the assessee and not the fair market rent as done by the DVO. It is observed that this claim of the assessee is duly supported by the decision of the Hon'ble jurisdictional High Court in the case of Asha Devi Agarwal (supra), wherein it was held by Their Lordships that while estimating the value of a property on rental basis, only the rent, which is actually payable by the tenants to the owners of the property, as the landlords should be taken into account. It was held that when the property is a tenanted property, the owner is entitled to collect only the rent payable by the tenants and a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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