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TMI Blog2016 (9) TMI 400X X X X Extracts X X X X X X X X Extracts X X X X ..... is ₹ 92,50,000/-, the same value has been adopted by the authorities below. Thus this is very fair and the assessee should not be aggrieved on this account. Hence affirm the order of learned CIT(Appeals) and decide the issue in favour of the Revenue qua the first property. Another property has been sold by the assessee for ₹ 2 lakhs. The AO noted that the value adopted by the Stamp Valuation Authority was ₹ 5,47,518/- . The AO in this case has referred the valuation to the DVO. However, there is no whisper in the order of learned CIT(Appeals) regarding the receipt of DVO’s report. Till date the Revenue is not in a position to show the DVO’s report. Thus find that this is a very strange situation. Absence of DVO’s report despite of so much elapse of time is not at all warranted and remit this issue to the file of the AO. The AO shall consider the issue afresh after taking into account and bringing on record the valuation done by the DVO Decided partly in favour of assessee for statistical purposes. - I.T.A. No. 337/Nag/2013 - - - Dated:- 15-7-2016 - Shri Shamim Yahya, Accountant Member Appellant by : Shri C.J. Thakar Respondent by : Shri A.R. Nin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... road abutting the land and that since all the adjoining pieces of land had raised structures and were encroachinq on the Pandan, access to appellant's property at Gat No.350 was totally blocked. It is stated by the appellant that it was because of the consequent absence of any approach road that the land had no practical use and could not get any customer and that therefore had a comparatively low value and it was imperative that the appellant should sell the property to some builder or some strong persons who could get the encroachment removed and that therefore the property was sold to the Sandal Group who are builders in Pune in the month of December, 2005 through a broker. 6.2 However no reliable evidence has been furnished by the appellant to establish the fact that the said property did not have any approach road at the time of its sale. The only evidence furnished by the appellant are the letters written to the Tehsildar, Musli Taluka dated 04-02- 2000 and one letter written to the Police Inspector, Paud Police Station on 05-02--2003 which are in the form of complaint against the encroachment of the said property. It is important to note that the said property w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this indeed is a fact that there is no evidence to establish that M/s. Voss Exotech Automatic Pvt. Ltd. did purchase. the adjoining property which provided access to gat no. 350. As a matter of fact the valuation report of Registered Valuer has a map which is an Annexure to the report (at page 31. of the paper book) wherein various adjoining plot numbers have been mentioned. There are 6 sides to the property and plot numbers have been mentioned on each of the 5 sides. On the 6th side to the south map it is merely states village Amboli. The said map has been issued by the Sub Registrar of Mulshi and had the gat no. 285 been abutting the plot sold, the same:: would have been obviously mentioned. Thus the appellant is not able to establish/justify the huge difference in the price at wh'ich it sold the pr-operty to Shri Bandal and the price at which Shri Bandal sold the property In M/s. Voss Exotech Automatic Pvt. Ltd. For this reason also it is difficult to accept the contention of the appellant that provisions of section 50C should riot be applied. 6.5 It is also to be noted that all the submissions made by the appellant in this regard including the valuation report of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t valuation report furnished by the appellant is basically flawed as the Valuer has provided deduction @ 30% in view of the obstruction to the approach road, 10% for open space ancl common amenities and 10% for internal road development which results in Cl total of 50% deduction of the stamp duty valuation. This fact has also been quoted by the OVO and the relevant comment of the OVO is reproduced hereunder: - The assessee has submitted registered. Valuer report by one Mr. A.N. Bapat whose registration number is quoted as CAT-A5 106 of 1988. According to the regd. Valuer the deduction or 30% is considered for the obstruction to the approach road, 10% for open space and common amenities and 10% for internal road development. And this total 50% is deducted from stamp duty valuation which is absurd and arbitrary. Moreover the registered valuer has not given any documentary evidence nor cited any rehable sale instances which will reflect the true market value. Hence, the registered valuer's report cannot be relied upon. 11 I find considerable force in the above comments of the DVO. 7. Considering the above facts, I am in agreement with the findings of the Ld .AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in extremely helpless condition. In view of the above, it is requested to sale proceeds of ₹ 2 lacs be adopted. Otherwise the valuation of FMV be referred to valuation Officer. However, the AO noted that the assessee had not submitted any documentary evidence in support of his claim. The matter was referred to the DVO. However, since the DVO s report was not received, the AO proceeded to make the assessment on the basis of the rate adopted by the Stamp Valuation Authority. 9. Upon assessee s appeal, learned CIT(Appeals) affirmed the action of the AO holding as under : I have considered the facts of the case and submission of the appellant. The Ld. AO had asked the appellant to furnish evidence to establish reasons as to why the valuation is lower than the fair market value as evidenced by the Stamp Valuation Authority in respect of the sale of said flat. However, no evidence (like valuation report) was filed by the appellant to support its contention that the property was in a bad condition and was therefore sold at a lower price. In such circumstances, I uphold the action of the Ld. AO to apply of provision of section 50C to determine the long term cap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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