INCOME TAX ACT, 1961

Section 45

Capital gains - Computation - Future Value -

AO made addition on account of long-term capital gain on sale of land by the assessee by accepting valuation report of DVO who was not qualified Valuer of agricultural land and not accepting the valuation report of Government Approved Valuer, who is qualified Valuer for agricultural land. Assessee submitted that issue was covered by decision of Tribunal by decision in case of co-owners of land so sold in the case of Smt. Hemaben Bharatbhai Desai, in I.T.A. No. 3204/AHD/2016, dated 21-2-2019 by which index cost of acquisition by taking fair market value of @ 210 was directed to be adopted. Held: Tribunal in case of Smt. Hemaben Bharatbhai Desai, in I.T.A. No. 3204/AHD/2016, dated 21-2-2019 had held that dispute between assessee and AO was the rate at 290 per sq.mtr as FMV as on 1-4-1981 whereas DVO has estimated the same @ 162 per sq.mtr. Further, CIT(A) had estimated the same @178 per sq.mtr. DVO had himself stated in his report that land was situated at more appropriate location as compared to sale instances considered by him. Therefore, entirety of the facts and taking a holistic view, average value as determined by Registrar Valuer of assessee DVO and had considered by CIT(A) would be more reasonable. Accordingly following the facts of the case, AO was directed to re work out index cost of acquisition by taking FMV at Rs. 210 per sq. meter and re-compute taxable long-term capital gain.

Followed:Hemaben Bharatbhai Desai, in I.T.A. No. 3204/AHD/2016, dated 21-2-2019.

REFERRED :

FAVOUR : Partly in assessee's favour.

A.Y. : 2013-14

INCOME TAX ACT, 1961

Section 50C

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