Income Tax Appellate Tribunal - Ahmedabad
Dipak Narendra Rao Adhikari,, Surat vs Acit,Circle-3(1),, Surat on 6 April, 2017
IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD "D" BENCH
(BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER
& SHRI MAHAVIR PRASAD, JUDICIAL MEMBER)
ITA. No: 771/AHD/2015
(Assessment Year: 2010-11)
Dipak Narendra Rao V/S ACIT Circle-3(1), Surat
Adhikari Quarter No. 867,
Kribhco Township,
Kribhco Nagar, Surat
(Appellant) (Respondent)
PAN: AAZPA 7914Q
Appellant by : Shri Dinesh Dwivedi, AR
Respondent by : Shri Santosh Karnani, Sr. D.R.
(आदे श)/ORDER
Date of hearing : 03 -04-2017
Date of Pronouncement : 06-04-2017
PER N.K. BILLAIYA, ACCOUNTANT MEMBER:
1. This appeal by the Assessee is preferred against the order of the Ld. CIT(A)- 3, Surat dated 23.01.2015 pertaining to A.Y. 2010-11.
2 ITA No 771/Ahd/2015
. A.Y. 2010-11
2. The only grievance of the assessee is that the ld. CIT(A) erred in confirming the addition of Rs. 6,21,730/- on account of 1/8th share of the assessee.
3. The assessee derives income from salary being a Manager in Krishak Bharati Co-operative Limited, Surat. The return for the year was selected for scrutiny assessment. During the course of the scrutiny assessment proceedings, the assessee was asked to furnish the details in respect of property purchased or sold during the year under consideration. The assessee brought to the notice of the A.O. that he has received ancestral land under inheritance after the demise of his mother. It was further explained that the assessee has inherited 1/8th share in the said piece of agricultural land which was sold for Rs. 70 lacs out of which the assessee got Rs. 8.75 lacs as his share. The assessee further filed the computation of long term capital gain by taking cost of acquisition as on 01.04.1981 at Rs.
100. The A.O. was not convinced with the Fair Market Value declared by the assessee and accordingly referred the matter to the DVO. The DVO adopted the Fair Market Value @ 18 per sq. mtr. and the A.O. recomputed the long term capital gain by taking Rs. 18 as the FMV as on 01.04.1981 and made the addition accordingly.
4. Assessee carried the matter before the ld. CIT(A) but without any success.
5. While dismissing the appeal of the assessee, the ld. CIT(A) observed that the valuation report submitted by the appellant is not from a registered valuer. The ld. CIT(A) further found that the valuation report submitted by 3 ITA No 771/Ahd/2015 . A.Y. 2010-11 the assessee is not on any scientific basis, the ld. CIT(A) confirmed the additions.
6. Before us, the ld. counsel for the assessee vehemently stated that the reference to the DVO is not according to the provisions of the law. The ld. counsel further brought to our notice report of a registered valuer dated 01.07.2013. It is the say of the ld. counsel that this registered valuer has estimated the FMV as on 01.04.1981 at Rs. 110 per sq. mtr. Therefore, the same should be accepted.
7. Per contra, the ld. D.R. strongly relied upon the findings of the revenue authorities.
8. We have given a thoughtful consideration. The undisputed fact is that the first valuation report submitted by the assessee was not from a registered valuer and the second valuation report which is from a registered valuer is dated 01.07.2013 and the assessment order is dated 28.03.2013 which means that the same has been obtained after the assessment order. A perusal of the valuation report shows that no comparable case has been considered by the valuer. We find that the valuer has adopted the Gold Price-Index fixed by the Reserve Bank of India as his approach to the valuation of the land. In our considered opinion, the approach adopted by the valuer in his valuation report dated 01.07.2013 is not proper. Though the reference to the DVO by the A.O is not as per the provisions of the law and, therefore, the valuation made by the DVO cannot form the basis of the 4 ITA No 771/Ahd/2015 . A.Y. 2010-11 assessment but at the same time the valuation adopted by the assessee does not also have any scientific basis. The Fair Market Value taken by the A.O. is @ 18 per sq. mtr. and the Fair Market Value taken by the assessee is @ Rs. 100 per sq. mtr. To bring to an end unnecessary litigation, in our considered opinion, the Fair Market Value as on 01.04.1981 if taken at Rs. 60 per sq. mtr. should meet the ends of justice. We, accordingly, direct the A.O. to adopt FMV as on 01.04.1981 at Rs. 60 per sq. mtr. and re-compute the long term capital gains tax liability.
9. In the result, the appeal filed by the Assessee is partly allowed.
Order pronounced in Open Court on 06 - 04- 2017
Sd/- Sd/-
(MAHAVIR PRASAD) (N. K. BILLAIYA)
JUDICIAL MEMBER True Copy ACCOUNTANT
MEMBER
Ahmedabad: Dated 06/04/2017
Rajesh
Copy of the Order forwarded to:-
1. The Appellant.
2. The Respondent.
3. The CIT (Appeals) -
4. The CIT concerned.
5. The DR., ITAT, Ahmedabad.
6. Guard File.
By ORDER
Deputy/Asstt.Registrar
ITAT,Ahmedabad