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TMI Blog2025 (3) TMI 1410X X X X Extracts X X X X X X X X Extracts X X X X ..... of the DVO is contrary to the facts on the records as on reasoning or calculation was made available by GAV on how he calculated the value of land situated on main road vis-a -vis the one which is situated inside." 2. The above grounds of appeal raised by the Revenue are on the issue of valuation of the property as on 01.04.1981. The relevant facts are, during assessment proceedings, the AO observed that assessee had sold a residential property at Plot No.8, Road No.34, WEA Pusa Road, Karol Bagh, New Delhi vide Sale Deed dated 17.10.2014 for a sale consideration of Rs. 46,00,00,000/- in which assessee's share was Rs. 23,00,00,000/- i.e. 50% of the total sale consideration. The above property was originally purchased by Bhagwant Singh, father of the assessee vide Agreement to Sale dated 29.12.1969 and Will dated 21.12.1975, the property was bequeathed to the assessee along with Sukhdeep Singh in equal shares. The total area of the plot is 1002.3 sq.mtrs. and as per the valuation report of the registered valuer, the property was valued at Rs. 2,49,89,000/-. The details of the property are as under :- Valuation of land @ Rs. 14,000/- per square meters (14000 * 1226.3 sq.mtrs.) Rs.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the DVO. After considering the detailed submissions of the assessee, ld. CIT (A) rejected the issues raised by the assessee relating to reference to the DVO, however he gave the relief to the assessee on the grounds of merits. The brief findings of the ld. CIT (A) are reproduced as under :- "7.10.1 I have perused the assessment order, GAV's report, DVO's Report and considered the submissions made by the appellant. In various cases the courts have directed the valuation by the DVO to be reconsidered in the light of the objections raised by the assessee. It implies that the assessee has a right to challenge the mode of determination of fair market value by the DVO. The appellant has contested that the three comparable cases taken by the DVO are located in entirely different areas of Delhi, have much smaller area and arc lease hold lands, therefore by no means then can be taken as comparable cases for determination of fair market value of the property in question. From the perusal of the DVO's report it is clear that he has first calculated average rate of 3 properties adopted by him i.e. [Rs.20676/- + Rs. 22993/- + Rs. 20660/-)/3- Rs. 214432/- as on 31.01.1990 which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Signage, side road and back lane of 40 ft. and has big commercial value and has no comparison with the properties which has been cited by the DVO and adopted the rates. The DVO in his report in para 6.3 has mentioned that the property is situated on 120 wide main Pusa Road surrounded by 5-6 schools, Hotels & Commercials/Coaching centres. The School Lane, Babar Road and Hanuman Road are purely residential localities on 30 to 45 ft road. Furthermore, as per CPWD rates there is an increase of 15% on location advantage over the properties cited as comparable by the DVO based on rates published by CPWD. 7.10.4 The DVO in his report dated 01.12.2017 has made the following observations regarding source of 3 comparable cases adopted by him in para 7.3(3) as under : To work out the fair market value of Immovable Property under section 55-A of I.T Act, 1961 as on l/04/1981. Comparative Sale instance of Similar Land' method has been adopted to work out the fair market value of the land of subject property a similar sale instances of nearby land were sought from the Sub Registrar- III, Govt of NCT, 4/7 Asaf All Road, New Delhi vide this office letter nos.VOII/ ND/IT-06/55-A/2016-17/21 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is of valuation/rate of land to be adopted The valuation is based on the circular rates (govt approved rates) provided by Land and Development Office, Ministry of Housing and Urban Affairs, Govt. of India. The valuation is based on three cases adopted by the DVO. The source mentioned as auction details available for the nearby location and period. The cases adopted by the DVO are in different locations compared to the property to be value and source of has been mentioned a auction details available for the nearest location which is neither authentic nor reliable. 2. Date for the rate of land The Circle rate taken are for exact date i.e. 01.04.1981, source of data is Land Development Office, Ministry of Housing and Urban Affairs, Govt. of India. The rates taken are for the period from January 1990 to March 1990 which is 9 years later than the date. DVO has dragged back the rates from 31.03.1990 to 01.04.1981 by applying rate difference for 8.833 years @ 12% per year but source of data not mentioned and hence its authenticity is questionable. 3. Size of the property Circle rates have been taken published by Land and Development Office, Ministry of Housing and Urban Affairs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pection of the building that makes it more acceptable than the report of the DVO which is based on pure guess work. Therefore, in my opinion, the fair market value of the property determined by Govt. Approved Valuer is close to the correct fair market value and can be adopted for computation of capital gain. Therefore, the addition of Rs. 6,03,50,181/- made by the AO on account of long term capital gain by adopting the fair market value of the property suggested by DBO in his report dated 01.12.2017 cannot be sustained and is deleted. Accordingly, grounds of appeal no.2, 5, 6, 8 & 9 are allowed." 6. Aggrieved the above order, the Revenue is in appeal before us objecting to the relief granted to the assessee. 7. At the time of hearing, ld. DR of the Revenue brought to our notice findings of the AO, valuation report submitted by the DVO and objections raised by the assessee on the valuation adopted by the DVO and he vehemently argued in support of the findings of the AO. 8. On the other hand, ld. AR of the assessee also brought to our notice issues raised by the assessee before the AO as well as before the ld. CIT (A) that the DVO has made the comparison of the property with the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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