TMI Blog2020 (9) TMI 724X X X X Extracts X X X X X X X X Extracts X X X X ..... d therefore there is a probability of error of 20% in such value. CIT(Appeals) has correctly estimated the Fair Market Value (F.M.V) of the land at ₹ 45,00,000/- as against the value of ₹ 57,02,000/-. After considering the probability of errors at 20% in the valuation report done by the registered valuer for the purpose of computing long term capital gains, we do not find any reason to interfere with the findings of the ld. CIT(Appeals) and therefore the relief provided to the assessee on both these grounds are sustained. - ITA No.03/PUN/2017, CO No.01/PUN/2020 (Arising out of ITA No.03/PUN/2017 - - - Dated:- 16-9-2020 - Shri P.M. Jagtap, Vice President (KZ) And Shri Partha Sarathi Chaudhury, Judicial Member For the Assessee : Shri Kishor Phadke For the Revenue : Shri S.P. Walimbe ORDER PER SHRI PARTHA SARATHI CHAUDHURY, This appeal preferred by the Revenue and corresponding Cross-Objection (C.O.,) by the assessee emanates from the order of the ld. CIT(Appeals) 10, Pune dated 28.10.2016 for A.Y. 2010-11 as per the grounds of appeal on record : 1. On the facts and circumstances of the case, the Ld. CIT(A) has erred on the valuation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l claim / evidence produced by the assessee in accordance with the decision of Hon ble Bombay High Court in the case of Humayun Suleman Merchant Vs. CCIT reported in 387 ITR 421. 4. We have perused the case records and considered the judicial pronouncements placed before us. The facts suggest that the additional ground of exemption u/s 54F of the Act with reference to long term capital gains on sale of land at S.No.72, Mouje Pimple Gurav, Pune, this ground was allowed by ld. CIT(Appeals) without giving an opportunity to the learned Assessing Officer to contest this additional claim / evidence produced by the assessee which is as per the decision of Hon ble Bombay High Court in the case of Humayun Suleman Merchant (supra). That further before us, the learned Authorised Representative of the assessee fairly conceded that this ground is in favour of the Revenue. Hearing the parties and considering the facts and legal parameters on this issue, ground No.3 of the appeal of the Revenue is allowed. 5. With regard to the other two grounds, we would refer to the findings of the ld. CIT(Appeals) and the relevant portion is extracted hereunder being relevant for adjudicating this appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 34 AB of the W.T. Act 1957. Who made the valuation of the land on 23.04.2010, wherein, F.M.V of the land on 0l.04.1981 was determined at ₹ 57,02,000/- considering the following facts: (a) It is a vacant Land situated in agriculture zone (b) Crops were grown till the year 1978, no crops grown thereafter. (c) The Land fall in an area included in town planning Scheme. In the regional plan for the Pune district region, sanctioned on 17.05.1976 prepared by the town planning department of the Govt. of Maharashtra. (d) Some Civic amenities were available hereby since prior to. 1981 (e) Means of transport including bus service of S.T, P.M.T and P.C.M.T were available since prior to 1981. (f) Freehold, fairly leveled land. (g) No land revenue realized in the year 1981. (h) The distance of Pune is approximately 14 K.M. (i) The said property was adjacent to the then existing municipal limits of pimpiri chinchwad. iii) However, during the assessment proceeding, the report, was summarily rejected by A.O. only on the plea that the registered valuer was not authorised to value the agricultural land. This presumption of AO is only based on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commonly seen that even in a particular area where rates as per ready reckoner is same however in real terms the rates vary substantially among the plots in the same area depending on the size and shape of plot, title of the land whether clear. or not proximity to road or transportation, level of the land and availability of civic amenities etc. Hence, the same cannot be accepted as a fool proof method. In this connection, it is relevant to bring on record the judgement of H'ble supreme court in the case of R.Sai Bharati vs J. Jayalalitha others decided on 24.11.2003, wherein H'ble Court has adjudicated the issue as to what extent ready reckoner rates are justifiable to determine the value of the land. While dealing the issue, the H'ble Court opined it as under : The guideline value has reference only in the context of section 47-A of the Indian Stamp Act (as amended by TN Act 24 of 1967) which provides for dealing with instruments of conveyance which are under valued. The guideline value is a rate fixed by the authorities under the stamp Act for purpose of determining the true market value of the property disclosed in an instrument requiring payment of stamp du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to value the land under discussion. However, at the same time, the valuation report may also not be considered as 100% sacrosanct because the earlier exercise has been based on estimate only, and considering the same there is probability of error of 20% in the valuation. Hence, after taking into consideration,. the totality of facts, much weight is required to be given to the registered valuer report, who after taking into consideration several factors has determined the value. The registered valuer is techniccally competent to determine the value, however, the AO is statutorily not bound to accept the value and is empowered to reject it, if it is found to be totally erroneous, however, in instant case, AO has not been able to point out too many errors. Hence, the F.M.V. of the land is estimated at ₹ 45,00,000/- as on 1.4.1981 against the value of s.57,02,000/- after considering the probability of errors at 20% in the valuation done by the registered valuer, for the purpose of computing long term capital gain. Accordingly, ground no. 2 is partly allowed. 6. As per our considered view, the ld. CIT(Appeals) has adjudicated the matter in a balanced way whereby the valuatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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