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TMI Blog2017 (8) TMI 1253X X X X Extracts X X X X X X X X Extracts X X X X ..... ng, then it is open to the authorities to reject it and adopt other methods for arriving at the “ fair market value . Sub-sec.(3) of Sec.50C provides for adoption of the value ascertained under sub-sec. (2) as the full value of consideration. In the case on hand, on facts, the fair market value arrived at by the Registered Valuer and accepted by the ld. CIT(A) has not been controverted by the ld. DR. The order of the ld. CIT(A) is a reasoned order. Hence we uphold the same. - Decided against revenue - ITA No. 640/Kol/2015 - - - Dated:- 23-8-2017 - Shri J. Sudhakar Reddy, AM And Shri S. S. Viswanethra Ravi, JM For the Appellant : Shri David Z. Chowngthu, Addl. CIT ( DR ) For the Respondent : Shri S.K.Tulsiyan, Advocate ORDER Per J. Sudhakar Reddy, AM This is an appeal by the Revenue directed against the order of the Commissioner of Income Tax-(A)-9, Kolkata for A.Y.2005-06. 2. There is only one issue involved in all the grounds of appeal and this relates to computation of the long term capital gain at ₹ 83,38,733/- by the AO as against ₹ 17,70,015/- declared by the appellant. 3. The fact of the case is that the return of income was filed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le Tribunal was of the considered opinion that the A.O. in the present case had passed the assessment order just to comply the statutory requirements for completing the assessment before 31/12/2007 and it was further held that the materials brought on record by the assessee before the A.O. has neither been considered by him nor by the C.I.T.(A). Therefore, in the interest of natural justice, the matter was set aside to the file of the A.O. to redecide the issue as per law, after taking into consideration of the various materials filed by the assessee and affording reasonable opportunity of being heard. The present order giving effect to the said order of Hon'ble Tribunal passed by the A.O. u/s. 254 of the Act was the subject matter of appeal before the ld. CIT(A). In the said appeal effect order, the A.O. followed the same basis of valuation as adopted in the original assessment proceeding and the value of the sale consideration was deemed to have been fixed at ₹ 2,52,13,000/- and the l/3rd share of the appellant at ₹ 84,04,333/-, meaning thereby the LTCG was computed at ₹ 82,38,733/- and the total income at ₹ 1,31,53,007/-. 4. The assessee carried ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and is depressed and submitted that these factors cannot lead to the quantum of reduction in value as reduced by the ld. CIT(A). He prayed that the issue should be restored to the file of the AO , who shall refer once again to the DVO for fresh adjudication. 6. The ld.counsel for the assessee, on the other hand, vehemently opposed the contentions and submitted that the assessee was the owner of 1/3rd of the land and the other two owners sold the land at the very same rate and the revenue had accepted the sale rates in those case. He further submitted that in the first round of the appellate proceedings the Tribunal had given certain directions and the ld. AO failed to consider the directions and repeated the assessment. He submitted that the land was located in a slum area with families all along and primarily inhabited by working class people of the minority community known as Anjuman-e-Burhani He enumerated each one of the factors which depressed the value of the land and the offer of purchase for building of a mosque on the said land and submitted that the assessee had no choice but to sell the land at the rate offered. He relied on various submissions made before ld. CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rice received and/or shown as per deed of conveyance is the actual value realized by the appellant or the appellant has suppressed the same in view of DVO's report backed by value estimated by the stamp duty authority while registering the conveyance deeds of the impugned land, the geographical situation of the land, surrounded attending situation and factors having any depressing or appreciative effect on the value of the property are to be looked into. The appellant submitted and narrated such situation in detail and argued that the same cannot be said to be untrue in absence of denial of such facts by the A.O. The appellant further submitted that the impugned land at the relevant time consisted of very low land, partly agricultural and partly doba (small waterbody). The dobas and other low areas gradually got filled up due to garbage dumping by the KMC. The land is bounded on the North by East Topsia Road, a decrepit road of 12 to 15 feet average width, which is the only ingress and egress to the land. The land could not be approached through any other side without trespassing into properties of other people, which were also of similar type during the relevant time. Such sur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant's land at the relevant time was higher than mentioned in the conveyance deed. On th other hand, it is evident that the DVO in his report has not discussed or taken into consideration the above position in and around the land and circumstance under which the appellant had to sell the property at the price fixed by the purchaser while determining fair market value rather he has based his opinion on the basis of value assessed by the Addl, District Sub-Registrar Office, Alipore for ascertaining value for stamp valuation purposes. In fact, relying on the stamp valuation for valuing a property defeats the very purpose of referring the matter for valuation to the DVO since the dispute is in respect of the stamp duty valuation itself. The DVO should have based his valuation on actual verification of the land and the various methods of valuation, i.e. primarily land building method, contractor's method of valuation, rental basis or yield basis method, municipal valuation method etc. In this case, the DVO has not ascertained any market value to which a willing, reasonable and prudent purchaser would pay for this property. Even the DVO has not considered the factors hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luer visited/inspected the impugned land/area in order to determine and assess valuation of the same as on November, 2004. On perusal of the said report it is found that the registered valuer has, in fact, incorporated the detailed basis of valuation including the comparable sale transaction adjacent to the appellant's impugned land and thus adopted the fair market value as on November, 2004 of the appellant's impugned land at ₹ 50,509/- per cottah and for entire 114.93 cottah at ₹ 58,05,000/-. Accordingly, the valuation as per stamp duty authority of ₹ 2,56,33,822/-, being more than 4 times higher, appeared not reasonable .. It is found that the A.O. has not discussed about the merits or demerits of the said valuation report. The A.O. could have discarded the report by adducing reason whatsoever and that not being done, it is to be presumed that he has nothing to comment on the same. 7.7. Before parting, it may be mentioned here that during first round of appellate proceeding, the then C.I.T.(A) sought for a remand report from the A.O. to know the status of assessment in the case of other two joint-owners for A.Y. 2005-06. In reply, the A.O. vide co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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