2014 (3) TMI 1173

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..... Year 2007-08 on the following amongst other grounds: 1. The Ld. Assessing Officer has initiated penalty proceedings u/s 271(1)(C) of Rs. 4,51,530/- on account of long term capital gains without appreciating the facts of the case in the right perspective. 2. The ground of appeal is without prejudice to the other 2. The assessee has shown long term capital loss of Rs. 3,61,076/- on sale of immovable property by taking a fair market value as on 01.04.1981, Rs. 19,84,120/-. The AO found that the fair market value as on 01.4.1981 was computed by taking the rate of Rs. 2,000 sq. mt. whereas as per Directory & Reference Book of Indian Valuers - Incorporating market value of property in Mumbai, the value of land situated in the same area is onl .....

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..... a registered valuer then the non acceptance of the said valuation by the AO cannot be said to be a deliberate false explanation leading to furnishing of inaccurate particulars or concealment of income. The claim of the assessee regarding fair market value is bonafide as it was based on the valuation report of the registered valuer, therefore, the valuation based on the experts opinion which was not accepted by the AO and took a different view which does not amount of making a falls or malafide claim. In support of his contention he has relied upon the following decisions:- i) Brittania Industries (238 ITR 57) ii) ACIT Vs. Dhariya Construction Co. (328 ITR 515) (SC) iii) Dilip N. Shroff's case (291 ITR 519) (SC) and submitted that DV .....

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..... from the general rate prevailing in the area depending upon the location, size, advantage and disadvantage attached to the particular plot of land and therefore, there was always a scope of variation in the matter of valuation. The addition has been made by the AO on the basis of reference book without referring the valuation to DVO. Even otherwise, the matter of valuation is highly subjected and the opinion of two experts vary in most of cases. Thus the addition is purely based on difference of opinion. The assessee has undisputedly disclosed the basis of valuation of fair market value adopted as on 01.04.1981. It is pertinent to note that the fair market value as on 01.04.1981 is always determined by considering the instance of sale and p .....

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