9911796707
TMI Blog2024 (6) TMI 1346X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income Tax Act, 1961 (hereinafter referred to as "the Act"), dated 25.03.2015. 2. The grounds of appeal raised by the assessee are as follows: "1. On the facts and in the circumstances of the case as well as law on the subject, the learned commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in making addition of Rs. 1,53,57,708/- on account of long-term capital gain u/s 50C of the Income Tax Act, 1961. 2. It is therefore prayed that the above addition may please be deleted as learned members of the tribunal may deem it proper. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of the hearing of the appeal." 3. Succinctly, the factual pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity, notice u/s 133(6) issued to the Sub Registrar, Palsana on dated 20.02.2015. The reply from the sub registrar office is received by assessing officer on dated 20.02.2015 stating the value of the property at Rs. 11,90,52,000/-. Difference of the stamp value and sales consideration are as under: Stamp Value Rs. 11,90,52,000/- Sales Consideration Rs. 7,14,31,200/- Difference Rs. 4,76,20,800/- Therefore, assessee vide show-cause notice dated 20.02.2015, was required to show cause as to why the difference of the sales consideration vis- a- vis the stamp value of Rs. 4,76,20,800/- should not be added to sale consideration for the purpose of the Capital gains as per section 50C of the I.T. Act. 4. In response, the assessee, vide his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by department valuation officer in his report. Here we request your goodself to consider all following circumstances which affect the value of the land and accept our document value instead of value adopted by department valuation officer. Here we would like to inform you that the-sale price of above mentioned land, was substantially affected by the following fact that: a) The Sugar Factory is situated near the land. The land gets affected with intense smell of molasses burning and pungent smell of sugarcane brewing. Moreover the polluting water and waste of the sugar factory gets dump in my land. b) The land is affected by much larger Waterways near land. It becomes water logged frequently, level of land was very low so the water l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t provisions of section 50C(2) of the I.T. Act abundantly make it clear that the value estimated by the DVO is binding upon the Assessing officer so far as the valuation of the asset in question is concerned. Duly complying with the same, the value estimated by the DVO is deemed to be the full value of the consideration received as a result of the transfer of the asset under consideration. The objections of the assessee were rejected by the assessing officer and the difference between the value of the asset transferred as estimated by the DVO and that as per Registered Deed at Rs. 1,53,57,708/- (Rs. 8,67,88,908- Rs. 7,14,31,200), was brought to tax under the head Long term Capital Gains of the assessee as per Section 48 r.w.s. 50C of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Revenue reiterated the stand taken by the ld. CIT(A), which we have already noted in our earlier para and is not being repeated for the sake of brevity. 12. We have heard both the parties and carefully gone through the submissions put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the facts of the case including the findings of the ld. CIT(A) and other material brought on record. We note that DVO in determining the FMV of the property has considered only two special observations/qualifications i.e. the agriculture land being deep from the village main road and about 1 to 2 kilometers on kachcha village road and it is adjacent to Sugar factory giving fall smell and affec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l for the assessee has submitted that the DVO has not considered all the objections filed by the assessee, hence the fair market value (FMV) determined by the DVO is an estimate which is not based on full facts of the case. It is fairly well known that the valuation of property involves some kind of guess work and estimation and this fact is very much evident from the valuation report of DVO. It is also a fact that the rate of property even in the same locality differs depending upon locational advantages and other factors. In the instant case, the DVO has not accepted the entire factors of the assessee`s case, as noted by us in above para. We note that determination of fair market value, after all, is an estimate only and therefore, consid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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