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TMI Blog2016 (6) TMI 553X X X X Extracts X X X X X X X X Extracts X X X X ..... s and circumstances of the case and in law, the learned CIT(Appeals) has deleted addition of Rs. 1,10,90,848/- made by the A.O. as the A.O. had not adopted the correct value to arrive at cost of indexation. 2. On the facts and circumstances of the case and in law, the learned CIT(Appeals) has failed to appreciate that the valuation reports do not refer to situation of surroundings present during the year 1981 or earlier and has considered the same." 2.1 In C.O. No.20103/Ahd/2011, the assessee has taken following grounds of appeal:- "1. On the facts and in circumstances of the case, the CIT(A) erred in not upholding assessee's grounds No.1, 2 & 3 taken before him that the impugned assessment order was bad in law more particularly beca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8,47,500 Less: Indexed Cost of acquisition 10,86,189 2,09,286 x 519 100 (Rs.2.23 per sq. mtr. X 93850 sq. mtr. = 2,09,286 Capital Gain chargeable to Tax 3,17,61,311 3.1 The Assessing Officer made impugned addition on following grounds: "(i) That, the basis of estimating the fair market value at Rs. 4O per sq. mtr. on 1.4.1981 was merely on presumptions, surmises and conjectures. (ii) That, the appellant had inspite of several reminders during the course of assessment proceedings, neither obtained nor submitted valuation report from a Registered Valuer to support the fair market value shown by the appellant as on 1.4.1981. (iii) That, vide letter dated 24.12.2009 the Sub-Registrar, Administration, Dadra and Nagar Haveli, Silvass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer is not based on any evidence, so claim of assessee should be allowed. Accordingly, he requested to allow the claim of assessee. 6. After going through rival submissions and material on record, we find that the only dispute that exists is the quantum of deduction allowable while computing the capital gains. The Assessing Officer heavily relied on the letter issued by the Sub-Registrar, Administration, Dadra & Nagar Haveli, Silvassa while adopting the rate of land @ 2.23 per sq. mtr. This letter was not confronted to the assessee. The claim of Revenue is that the rate of such land has been arrived at after taking into consideration the prevailing rate in the entire Village of Rakholi. Ld. counsel for the assessee disputed the content of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellant has also submitted the valuation report by the registered valuer who worked out the rate @ Rs. 40/- per , sq. Mt. The rate of Rs. 40/- Per Sq. Mt. includes cost of land leveling work etc. The Valuation Report was prepared after the inspection of the site has been done by Shri Jayesh K. Dalal on 11.12.2009 and by Shri Talsi Lakhani, the other valuer on 23.01.2010. The AO also contended in the RR that the reports do not refer to the situation of surroundings present during the year 1981 or earlier. So the reports cannot be accepted at all. (iii) The appellant has also taken the case of Shrikant K. Barve, for A.Y. 2006-07 as a comparable case wherein the department has accepted the value of land at Rs. 18/- per Sq. Mts. The A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rm of auto-rickshaws and buses is available. Further, the land was on the main road and has its own potential. The land was in the vicinity of developed industrial area and since it is situated on the main road, it would always fetch higher valuation. In these circumstances, determining the land value at Rs. 2.23 per Sq. mtr. was found to be on lower side as assessee's land as having more potential because of the advantages attached to it as discussed above. Therefore, taking into consideration that the Department had already accepted the value of the land of lesser advantages at Rs. 18/- sq. mtr. in vicinity and also considering the facts and circumstances, CIT(A) rightly estimated the value of the land at Rs. 25/- per sq. mtr. as against ..... X X X X Extracts X X X X X X X X Extracts X X X X
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