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TMI Blog2011 (3) TMI 511X X X X Extracts X X X X X X X X Extracts X X X X ..... that existing tenants would get accommodated without additional cost, naturally, the assessee could not have recovered any sale consideration from such existing tenants, but at the same time assessee had incurred cost on the over all project including the area allotted to the existing tenants and, therefore, such cost has to be allowed. - ITA No. 4085/Mum/2009 - - - Dated:- 4-3-2011 - T.R. Sood, Vijay Pal Rao, JJ. Sumeet Kumar for the Appellant K. Gopal for the Respondent ORDER T.R. Sood: In this appeal Revenue has raised following three grounds: 1. On the facts and in the circumstances of the case and in law, the ld. CIT[A] erred in deleting the addition made on account of recomputation of capital gains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rect because assessee has purchased the property in 1979. 3. Before the CIT(A) it was submitted that the property was purchased cheap as it was a distress sale. Further the valuation of same has been determined by a registered valuer and assessee had a right to choose the fair market value as on 1-4-1981. The ld. CIT(A) found force in this submission and accepted the claim of the assessee vide para-7 which reads as under: "7. I have carefully considered the information on record. It is pertaining to note that the property was purchased at Rs.75,000 on 31/10/1979. The F.MV as on 01/04/1981 adopted by the appellant was Rs.4,71,360. The appellant claimed that the property was purchased at low price as it was distress sale. However this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce potential of 1200 sq.ft. on the basis of value published in the Indian Valuer Directory. He referred to the valuation report at pages 152 to 158 of the paper book. He submitted that AO has not referred the matter to the DVO and AO cannot be called an expert on valuation, therefore, he was duty bound to adopt the value given in the valuation report. In the light of this report, according to him, the valuation was justified. 6. We have considered the rival submissions carefully. We find only some force in the submissions of the Ld.counsel of the assessee. It is a common knowledge that tenanted property fetch very low value and assessee might have been able to purchase the property little cheap and the discount on such distress sale may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r cost of construction for the area which was given to the old tenants. The AO rejected this claim because, according to him, since assessee has not received any sale consideration from old tenants, therefore, this cost should also not be claimed. 8. Before the ld. CIT(A) it was mainly submitted that permission was given by the government for re-development of the property subject to the condition that the existing tenants could be accommodated without any additional cost and, therefore, assessee had to give accommodation free of cost to the existing tenants, but at the same time, cost had been incurred and, therefore, same has to be allowed. The ld. CIT(A) agreed with these submissions and decided the issue vide para-11 which is as und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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