TMI Blog2014 (3) TMI 1173X X X X Extracts X X X X X X X X Extracts X X X X ..... actual cost or value of the property is based on the opinion, therefore, any addition made on the basis of difference of opinion and estimate would not automatically lead to the conclusion that the assessee has concealed particulars of income or furnished inaccurate particulars of income. The assessee has relied upon the various decisions wherein it has been held that the report of the DVO is merely an expression of opinion and on the basis of opinion and estimates penalty cannot be levied u/s 271(1)(C) as the concealment has not been proved in such a situation. We are of the considered opinion that the penalty u/s 271(1)(c) is not warranted in respect of the addition based on different fair market value as on 01.04.1981 when the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t ₹ 112 psq ft. as on 01.4.1981. Accordingly, the AO adopted fair market value of the property as on 01.4.1981 at ₹ 14,44,635/- only against ₹ 19,84,120/- and assessed the capital gain at ₹ 20,02,345/-. The AO has also initiated the proceedings for levy of penalty u/s 271(1)(C) and levied the penalty of ₹ 4,51,530/- at the rate of 100% of tax sought to be evaded in respect of the income added by the AO towards long term capital gain. The assessee challenged the action of the AO in levying penalty before CIT(A) but could not succeed. 3 Before us, the Ld AR of the assessee submitted that the addition in question has been made by the AO by taking a different fair market value as on 01.04.1981 which cannot be th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that DVO s report is merely an expression of opinion and on the basis of opinion and estimates no penalty u/s 271(1)(C) is leviable. Accordingly, the Ld AR has urged that the penalty levied u/s 271(1)(C) may be deleted. 4. On the other hand LD DR has relied upon the orders of authorities below and submitted that the valuation report relied upon by the assessee was without any basis as no instance of sale and purchase was recorded. However the value adopted in the valuation report is disproportionately higher than the rates in locality prevailing as on 01.04.1981. The AO has took the rates from the Indian Valuer s Directory and reference book which is a public document, therefore, the claim of the assessee was found incorrect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... instance of sale and purchase in the area and by making certain adjustment. Even by taking the utmost care while determining the value. It need not necessarily give the actual value of the property as on 01.04.1981. Since the actual cost or value of the property is based on the opinion, therefore, any addition made on the basis of difference of opinion and estimate would not automatically lead to the conclusion that the assessee has concealed particulars of income or furnished inaccurate particulars of income. The assessee has relied upon the various decisions wherein it has been held that the report of the DVO is merely an expression of opinion and on the basis of opinion and estimates penalty cannot be levied u/s 271(1)(C) as the conceal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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