9911796707
TMI Blog2013 (10) TMI 1493X X X X Extracts X X X X X X X X Extracts X X X X ..... rutiny assessment proceedings, the Assessing Officer noticed that in the relevant financial year, assessee sold its property located at H.No.8-2-544 and 8-2-544/1, Banjara Hills, Hyderabad admeasuring 5600 sq. yards alongwith area of 6870 sq. ft. for a consideration of ₹ 31,25,00,000. The Assessing Officer further noted that while computing the cost of acquisition the assessee had adopted the Fair Market Value of the land at ₹ 1,000 per sq. yard and that of the built up area at ₹ 100 per sq. ft. as on 1.4.1981. The Assessing Officer disagreeing with the Fair Market Value adopted by the Assessee conducted an enquiry through the Range Inspector and found that as per the information obtained form Joint Sub-Registrar-I, Hyderabad (South), the Fair Market Value as on 1.4.1981 of land and built up area are ₹ 75 per sq. yard and ₹ 34.10 per sq. ft. respectively. He therefore called upon the assessee to explain why the Fair Market Value of the property as per the SRO valuation shall not be adopted. In reply to the show cause notice, the assessee submitted that the SRO rates cannot be taken as Fair Market Value as per settled position of law. It was submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opted in certain comparable cases which were accepted by the first appellate authority as well as in some cases by the Income-tax Appellate Tribunal as against the SRO value adopted by the Assessing Officer, submitted that the Fair Market Value of ₹ 1,000 per sq. yard for the land and ₹ 100 per sq. ft for the built up area is reasonable and which is also supported by the Registered Valuer's certificate. It was submitted by the assessee that the Assessing Officer not only ignored the registered valuer's certificate but also various decisions of the Income-tax Appellate Tribunal Hyderabad Benches with regard to adoption of Fair Market Value. The CIT(A), after considering the submissions of the assessee in the light of various facts and materials on record relating to Fair Market Value adopted by him in comparable cases in different localities of Hyderabad as well as judicial precedents placed before him, came to a conclusion that considering the location of the property of the assessee at Banjara Hills, which is a prime area and its potential and future prospects, Fair Market Value of the land can be reasonably fixed at ₹ 900 per sq. yard. So far as the Fair Market ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be the Fair Market Value. The learned Authorised Representative for the assessee further submitted that the jurisdictional High Court also upheld the authority of the Tribunal in determining the Fair Market Value of a particular property keeping in view the other relevant factors like the valuation made by the Valuation Officer by applying reverse indexation method. The learned Authorised Representative for the assessee to substantiate his claim that the Fair Market Value adopted in the Registered Valuer's report is correct, placed before us a chart showing Fair Market Value of property in different areas being accepted at much higher rate by the appellate authorities as against the SRO rate applied by the Assessing Officer. The learned Authorised Representative for the assessee submitted that in case of Wasif Hasan Latif, whose property was located at Masab Tank, which is just half a kilometer away from the assessee's property, the CIT(A) accepted the fair market value at ₹ 1250 per sq. yard as against ₹ 70 per sq. yard fixed by the SRO and the Tribunal also confirmed the order of the CIT(A). The learned Authorised Representative for the assessee referring to the other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in a number of cases have consistently held the view that SRO value cannot be adopted as Fair Market Value. 9. Having held that SRO value cannot be considered to be the Fair Market Value, we have to now see whether the Fair Market Value adopted by the assessee on the basis of Registered Valuer's Report can be said to be correct. As can be seen from the Registered Valuer's report, a copy of which is at page 67 of the paper-book, the Registered Valuer, while determining the value of the property, though has mentioned in his report that such determination is on the basis of local enquiry made by him, but he has not elaborated the details of such enquiry or given any basis for his conclusions or any comparable case of sale of land in the adjoining area(s) to justify that the Fair Market Value adopted by him is reasonable. Therefore, the Fair Market Value of the property cannot be determined only on the basis of the report submitted by the Registered Valuer. However, the learned Authorised Representative for the assessee has submitted before us a chart showing the Fair Market Value of different properties which are accepted by the appellate authorities as against the SRO values. The de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Hyderabad Benches of the Tribunal in the cases of ACIT V/s. Ashwin Joshi (supra) and Smt.Ameena Khatoon (supra) are concerned, as can be seen from the findings of the Tribunal in these cases, the matter was remitted back to the file of the Assessing Officer, as the assessee, apart from submitting the registered valuer's report, had not brought any other material on record in the form of comparable cases to justify the value adopted by him. However, in the facts of the present case, as can be seen, the assessee has brought on record before us, as well as submitted before the CIT(A), the comparable cases to justify its claim that the Fair Market Value is much higher than the SRO value adopted by the Assessing Officer. At the cost of repetition, it may be stated that as can be seen from the details furnished, in case of a property at Masab Tank, as per item No.1 of the chart filed by the assessee, was adopted at ₹ 1250 per sq. yard by the CIT(A) as against ₹ 70 per sq. yard as per SRO and the same was also confirmed by the Tribunal. Similarly, in the case of Ashwin Datla (supra), the FMV of the property at Kukatpally was adopted at ₹ 750 per sq. yard as against ..... X X X X Extracts X X X X X X X X Extracts X X X X
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