9911796707
TMI Blog2018 (5) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... .O rejected the books. (Relief claimed Rs. 91,694/-) 2. That the LD. CIT (Appeals) has erred in law and on facts by confirming the addition made by the A.O for Rs. 44,285/- by disallowing the proportionate amount of interest out of total interest claimed by the appellant as business expenditure. As the conditions u/s 36(1) (iii) of the Income tax act are satisfied, interest paid on Borrowings for Business purpose are an allowable expenditure. (Relief claimed Rs. 44,285/-) 3. Further, the CIT (A) has erred in facts by confirming the addition for Rs. 43,868/- by disallowing the interest paid to LIC, treating the same as not relating to the year under consideration. However, all benefits of such amount had been taken in the year un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ids 50C of IT Act. Assessee filed objections on 01/01/2013 along with valuation report of Govt. approved valuer and requested to verify the facts through spot verification. The matter being technical was referred to valuation officer for determining the valuation of property u/s 55 A of I.T. Act. The Valuation Officer through his final report submitted vide No01//CG/V0/AGRA/2012-13/114 dated 15/03/2013 determined the fair market value of property at Rs. 73,18,400/- Vide show cause notice dated 15/03/2013, assessee was required to explain as to why the difference in value of property shown by assessee and fixed by Valuation Officer may not be treated as undisclosed sale consideration and accordingly long term capital gain on this sale consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot that high, appellant has furnished various certificates from Gram Pradhan, Lekhpal, some local property agents, residents of the area, all of which in effect mention about the cremation ground/ near the land, the underdeveloped conditions of area and the low property rates in the area. It was contented that arbitrary and incorrect facts are mentioned by the Valuation Officer in his valuation report." 5. The ld. CIT(A) has observed as follows: "1. Assessee has repeatedly contended that the area is not developed, but it is a fact that while fixing the circle rate development of the area is one of the basic criteria, and if the circle rate in the area is fixed at Rs. 4000/-, there is no relevance in again discussing that the area does n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Circle Rate of Rs. 4000/- given all these adverse conditions, valuation officer has taken 20% lower valuation than the circle rate, which is more than justified. 8.3.4 Apparently, appellant is not appreciating the proper procedure that is followed by DVO in making this valuation. It is a statutory reference that is made by AO to the valuation officer under section 55A, to ascertain capital gains tax liability. It is a technical report, where proper procedure is followed by the valuation officer to provide technical inputs to the AO. It is seen that the valuation officer has followed the proper procedure in making this valuation. A preliminary report was prepared and all the objections of assessee on issues listed out above were conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchased by the builder to develop a colony, the adverse factors that are emphasized by the assessee would have no impact on the value of land. 8.5 In any case, it is mentioned in the valuation report that the prevailing market rates of equivalent land of same merits on the road were to the tune of Rs. 15500/m2 in Feb, 2013. Thus taking into consideration growth rate of last three years, valuation officer has taken the market rates on the road at Rs. 8115/m2. Giving discount for interior location this value has been further halted (50%) at Rs. 4058/m2, which happened to be nearing the circle rate of the area, which is Rs. 4000/m2. For all adverse factors, another relief and discount of 20% is given, and the market value is computed @3800 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proper procedure is followed by the Valuation Officer to provide technical inputs to the AO. It is seen that the Valuation Officer has followed the proper procedure in making this valuation. A preliminary report was prepared. All the objections of the assessee on issues listed out above were considered. Based on the objection of the assessee and other facts of the case valuation of the property is finalized. 7. It is, thus, seen that as per the DVO's letter, which has been attached as Annexure A to the DVO's final report, the record and details of the inquiries made by the DVO were not maintained. It has not been shown as to how it is not practicable to do so and as to how it is beyond the scope of the guidelines for valuation. As such, i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
