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TMI Blog2018 (6) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... “Long Term Capital Gain”. Therefore, this issue being similarly situated be allowed in favour of the assessee. Value shown by the appellants of the property a on 1.4.1981 is considered then it was not less than fair market value and reference cannot be made. As far as the amendment carried out in section 55A is concerned, it is with effect from it is with effect from 01.07.2012 i.e. by finance 2012 the transaction taken place in F.Y. 2010-11 relevant to assessment year 2011-12 and the amended provision would not be applicable on this transaction. - Decided in favour of assessee - ITA.No.782/Ahd/2015 And TA.No.783/Ahd/2015 - - - Dated:- 4-6-2018 - SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER For The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property at ₹ 67,98,400/- as on 1.4.1981, whereas the value of DVO was at ₹ 36,54,000/-. Due to difference in two valuation report, the ld.AO issued show caused notice to the assessee as to why valuation as per the DVO s report be not adopted for calculation of capital gain. The assessee in her reply dated 17.7.2013 submitted that the DVO while considering the value of the property has not taken into account economic and developmental growth of the area where the property of the assessee situated. The DVO has taken the scenario of 1.4.1981 as against the present one. It was further submitted that the ld.AO failed to consider that even sale deeds/documents are executed on the basis of jantri rate prescribed by the government, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... VO. The ld.DR has further relied upon the order of the ITAT in the case of ITO Vs. Dharmishthaben J. Patel, ITA No.2622/Ahd/2014 wherein the Tribunal somewhat on similar situation partly allowed the appeal of the Revenue. 6. We have considered rival submissions and gone through the record. The issue before us is whether the Revenue authority was justified in making a reference to the DVO under section 55A of the Act to determine fair market value of the property by doubting valuation of the property obtained by the assessee from registered valuer. We find that similar issue has come up before the Tribunal in the cases of other co-owners also viz. Late Shantaben P. Patel Vs. ITO and Others (supra) (Judicial Member herein is a party). In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DVO for ascertaining the fair market value as on 1.4.1981 also, we find that such reference was not competent. We have noticed that prior to the amendment in section 55A with effect from 1.7.2012 in a case, the value of the asset claimed by the assessee ; is in accordance with the estimate made by the Registered Valuer, if the Assessing Officer was of the opinion that the value so claimed was less than its fair market value as on 1.4.1981. It would not be the case of the Assessing Officer that the value of the asset shown as on 1.4.1981 was less than the fair market value. Such clause, 'therefore, as it stood at the relevant lime, had no application to the valuation as on 1.4.1981. We are conscious that with effect from 1.7.2012, the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Division Bench of this Court in the case of Hiaben Jayanlilal Shah v. ITO [2009] 310 ITR 31/181 taxmann 191 (Guj). In the said decision it was held and observed as under: 10. Under clause(a) of sec. 55A of the Act under the Assessing Officer is entitled to make the reference to the Valuation Officer in a case where the value of the asset as claimed by the assessee is in accordance with the estimate made by the Registered Valuer, if the Assessing Officer is of the opinion that the value so claimed is less than the fair market value. In any other case, as provided under clause (h) of Sec. 55A of the Act, the Assessing Officer has to record an opinion that (i) the fair market value of the asset exceeds the value of the asset a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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