TMI Blog2023 (6) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... the rent capitalization method for valuation of the property as a prescribed method for valuation. Commissioner by considering the peculiar facts that AO has failed to point out any lacunae or fallacies in respect of the DVO report to substantiate his claim that the valuation report was not reliable and in the remand report, the AO did not cite any comparable evidence of sale of property at the value adopted by the AO in the assessment order, ultimately accepted the value determined by the DVO, as the fair market value of the property sold and therefore, considering the peculiar facts and circumstances of the case restricted the addition to the difference of Rs.35,18,400/- (Rs.2,01,33,600 - Rs. 1,66,15,200). Considering the decision o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Appellant, in response to which the Appellant attended the proceedings and filed necessary submissions and documents. From the details filed, it was observed by the Assessing Officer that during the year under consideration, the Appellant company was engaged in the business of real estate developers, construction of complex, malls, commercial building etc and has sold shop No. 9 to 13 at plot No. 902, Civil Lines, Shashtri Chowk, Bijnore measuring to the extent of 335.56 sq. Mtr. or 3612 sq ft. to M/s. Reliance Corporate IT Park Ltd. for sale consideration of Rs.1,66,15,200/-. On enquiry by sending the notices u/s. 133(6) of the Act on dated 28.11.2017 to the Registrar office to obtain the details of the property sold, the reply was rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value of the consideration received or accruing as a result of such transfer. The Assessing Officer, ultimately, added an amount of Rs.1,69,07,244/- in the income of the Appellant company by holding that in view of the above observations, the Appellant company has sold the property at Rs.1,66,15,200/- instead of stamp value of Rs.3,35,22,444/- and the Director of the Appellant company himself admitted while recording the statement that the circle rate of the property was Rs.3,35,22,444/-, hence, the difference between stamp value and sale consideration of Rs. 1,69,07,244/- (3,35,22,444 - 1,66,15,200) is being added back to the total income of the Appellant company. 4. The Appellant being aggrieved, challenged the said addition befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Appellant in the course of assessment proceedings. It is also submitted that the valuation report of the DVO cannot be relied upon as the factors and methods on which the said value has been arrived at are not available. 5.1.2 I have carefully considered the finding of the AO, Remand Report, report of the DVO and submission of the Ld.AR. I find that the AO himself has referred the property sold to DVO for valuation and now in the remand report dated 27.02.2019 raising question over the method of valuation used by the DVO. The DVO has used rent capitalization method for valuation of the property, which is a prescribed method for valuation. The reason given by the AO in the remand report for rejecting the valuation done by the DV ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the rent capitalization method for valuation of the property as a prescribed method for valuation. The ld. Commissioner by considering the peculiar facts that the Assessing Officer has failed to point out any lacunae or fallacies in respect of the DVO report to substantiate his claim that the valuation report was not reliable and in the remand report, the Assessing Officer did not cite any comparable evidence of sale of property at the value adopted by the Assessing Officer in the assessment order, ultimately accepted the value determined by the DVO, as the fair market value of the property sold and therefore, considering the peculiar facts and circumstances of the case restricted the addition to the difference of Rs.35,18,400/- (Rs.2,01 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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