INCOME TAX ACT, 1961

Section 55

Capital gains - Cost of acquisition - Fair market value as on 1-4-1981 - Market value determined by AO/CIT(A) instead of DVO

Assessee had sold 75.046 cents of land together with two residential houses for a total sale consideration of Rs. 4,75,52,850 and land was purchased prior to 1981. Issue was as regards adoption of fair market value as on 1.04.1981 by assessee. For ascertaining fair market value of the property there was no reference to DVO. CIT(A) was of view that AO was not justified in restricting FMV of the subject land as on 1.04.1981 and directed AO to adopt Rs. 50,000 per cent as Fair Market Value of land as on 1.04.1981 for purpose of computation of capital gains. Held: CIT(A) cannot determine fair market value determined on basis of Tribunal order in case of Kurian Joseph [[ITA No.137/Coch/2014, dt. 17-10-2014] because it could not be said that value of the property which was considered by Tribunal in above case was identical. Accordingly, findings of CIT(A) were vacated. Fair market value is to be determined by DVO instead of determining value by AO/CIT(A) without taking technical expert's opinion. Thus, issue was remitted to file of AO with a direction to get valuation report for property from DVO and decide issue afresh.

REFERRED : Kurian Joseph v. Dy. CIT [ITA No.137/Coch/2014, dt. 17-10-2014]

FAVOUR : Matter remanded

A.Y. :

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