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TMI Blog2019 (3) TMI 275X X X X Extracts X X X X X X X X Extracts X X X X ..... ircle rate for a particular area has categorized any area to be a A-category, then it cannot be compared with the area categorized as B-category having a lower circle rate. Thus, this factor alone vitiates the DVO’s report and the basis adopted by him. If assessee has filed Approved Valuer’s report taking into consideration various factors applicable for the area of Vasant Vihar, then same does not loses his credence to DVO’s report. It has to be given a credible importance and it cannot be said that the DVO’s report should supersede the Approved Valuer’s report. Even, the comments of the DVO on the registered valuer report is not adverting to the point, as to why Safdarjung rate has been applied at Vasant Vihar. Looking to the fact that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide her will dated 03.01.1992 bequeathed her entire one half undivided share in the said property equally in favour of her two heirs, namely, Shri Priya Ranjan Pandit and Shri Shiv Ranjan Pandit. The assessee s share in the said property came to 25% of the undivided share. In response to the show cause notice to justify Long Term Capital Gain, assessee submitted the valuation report of the registered valuer and also the cost of acquisition of asset as on 01.01.1981 which was worked out at ₹ 69,26,000/-. However, the Assessing Officer referred the matter to the DVO to ascertain the fair market value as on 28.11.2013. As per the report, FMV as on 01.04.1981 was estimated at ₹ 34,43,800/-. The said dispute was with regard to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion reports, no comments can be offered. It ma however be said that Safdarjung Area was much more developed than Vasant Vihar during 1981. Hence valuation of a Vasant Vihar property can only be done on considering the land rate lower than the land rate of Safdarjung property. 4. The valuation of the property has been done as per guidelines. It has nothing to do with another case as referred for Shanti Niketan. The facts and circumstances at Shanti Niketan might have been different. Moreover, Shanti Niketan was a more developed area than Vasant Vihar during 1981. Further comments may however be offered on receipt of the referred valuer s report amounting to ₹ 69,26,000/- 5. This aspect is to be decided by the competent Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be substituted for the valuation of the property in Delhi done by approved valuer. 6. Ld. CIT(A) had rejected both the valuation report of approved valuer by the assessee and sustained the valuation report of the DVO and accordingly the addition made by the Assessing Officer was sustained. 7. Before us, learned counsel for the assessee submitted that there is inherent infirmity in the valuation of the DVO because he has taken the land rate of Safdarjung area as per the Nabhi s guide which cannot be said to be applicable for Vasant Vihar area which is a much higher category colony. The DVO has taken the DDA s auction rates for various years and the Safdarjung rates have been modified accordingly which cannot be said to be the proper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considering the rival submissions and on perusal of the relevant findings given in the impugned orders, we find that Assessing Officer has recomputed the Long Term Capital Gain at ₹ 10,84,67,878/- as against ₹ 10,00,87,423/- shown by the assessee. The difference amount of ₹ 83,80,455/- has been added solely on the valuation of the property as on 01.04.1981, as the assessee had shown at ₹ 69,26,000/-, whereas the DVO has reduced to ₹ 34,43,800/- which had the effect of indexation cost. From the perusal of the DVO s report, it is seen that his report is based on average auction price of property situated in Safdarjung area during the year 1981-82 after taking the adjustment factors, has been stated ₹ 3128 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ouse tax which is generalized guide and does not take into account the peculiar features of the property being valued. Similarly, here in this case, also entire basis of the DVO is based on the value given in the Nabhi s guide and thereafter, he has made certain adjustment which cannot be said to be a proper factor. Nabhi s rates are nothing but merely compilation of DDA s auction rate based on reasonable estimation and if he is applying the auction rate of Safdarjung area during the year 1981 which cannot be held to be applicable for the locality of Vasant Vihar which is far more developed area. If the authorities while fixing the circle rate for a particular area has categorized any area to be a A-category, then it cannot be compared w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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