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TMI Blog2012 (6) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... fied." 3. The only issue for our consideration relates to deleting the addition made by the assessing officer on the basis of DVO's report. The facts of the case stated in brief are that the assessee, a non-resident during the year under consideration had sold an industrial plot at Naraina Indl. Area, Phase-II, which was inherited by him from his late mother. The assessee's share in the property sold was 2/3rd. The assessee's share of sale consideration of Rs. 2,90,00,000/- works out to Rs. 1,93,33,333/-. Out of the declared capital gains of Rs. 1,80,83,239/- the assesse had invested Rs. 50 lakhs in REC Bonds and Rs. 1,44,00,000/- in a specified capital gain account to be utilized for purchase or the construction of a residential house to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ember, 2003, the rates were more or less static and hence no adjustment had been made for this period in his report. During the period 1/04/2004 to 5/01/2007 the DVO had arbitrarily added an increase of 1 per cent per month without any basis and on his own presumptions and surmises to arrived at the value of the plot. Further the circle rates for category D was Rs. 21,800/- per sq. mt. and for category G was Rs. 13,700/- per sq. mt. Therefore, there was a difference of Rs. 8,100/- per sq. mt. in two categories. The ld. DVO had not made any adjustment for the difference in the category of the two plots, which is completely incorrect and against the facts and circumstances of the case. The ld. CIT (Appeals) considered the additional evidence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that there could not be any comparison between the land in Naraina and in Okhla. The circle rates prescribed by the DDA in July, 2007 varied from Rs. 43,000/- for category A land to Rs. 6,900/- for category H land. The circle rates in Naraina category G the second lowest was Rs. 13,700/- and for Okhla at Category D was Rs. 21,800/-. The DVO had not patently made any effort to find out a comparable sale transaction in Naraina Indl. Area whereas the assessee had obtained under RTI seven certified instances of land of Naraina Indl. Area and its neighboring area of Mayapuri Indl. Area of dates of sale from April, 2006 to June, 2007 having sale value ranting from Rs. 8,969/- per sq. mt. to Rs. 13,953/- per sq. mt. in Naraina and of Rs. 6,503/- t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pital assets to the valuation officer. It means that as per provisions of section 50C(1) the maximum value can be taken as per circle rates, prescribed by the State Govt. for the purpose of stamp valuation. Since the assessee had sold the property at much higher rate above the circle rates prescribed in the concerned area, the ld. CIT (A) was justified in deleting the addition based on the DVO's report. On the other hand, the ld. Sr. DR supported the order of the ld. CIT (Appeals). 6. We have heard both the parties and gone through the material available on record. Under section 48 of the Income Tax Act, 1961 the income chargeable under the head "Capital gains" shall be computed, by deducting from the full value of the consideration receiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee was Rs. 13,700/- per sq.mtr. as against the sale instances adopted by the DVO for Okhla Indl. Estate, which falls in category D. The value of assessee's share of the property as per circle rates applicable in the case of the assessee works out to Rs. 2,00,98,722/- as against sale consideration of Rs. 2,90,00,000/- admitted by the assessee. In the case of the assessee, there is nothing with the AO to suggest that the assessee had received more than what is stated in the sale deed and, therefore, full value of consideration cannot be adopted as per the DVO's report which represent fair market value of industrial plot sold. Adoption of DVO's report without providing opportunity of being heard is also against the principles of natura ..... X X X X Extracts X X X X X X X X Extracts X X X X
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