INCOME TAX ACT, 1961

Section 50C

Capital gains - Reference to DVO - Objection to value determined by DVO being much higher as compared to sales instances submitted -

Assessee filed appeal against the valuation of property adopted by Valuation Officer (VO) on the ground that Valuation Officer had adopted the value of the property at Rs. 3,025 per sq.yard which was very much higher as compared to the sale instances submitted by it. He therefore prayed that the actual consideration received by it may be adopted for computation of capital gain.Held: These sale instances were two to three years prior to the sale executed by the assessee. Therefore, they may not reflect the actual market value of the property as on the date of the sale. However, giving weightage to the sale instances, it was fit and proper to adopt the market value of the property at Rs. 2,000 per sq.yard and thus AO was directed to recompute the long-term capital gain by adopting the same and bring the long-term capital gain to tax after allowing the other relevant expenditure and exemption under section 54F.

REFERRED :

FAVOUR : Partly in favour of assessee.

A.Y. : 2008-09

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