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TMI Blog2019 (4) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... ] and has held that if the value declared by an assessee as on 1.4.1981 on the strength of registered valuer’s report is more than the fair market value sought to be determined by the AO, then reference under section 55A for determining fair market value by the DVO cannot be sent. Both the assessee have declared cost of acquisition for the purpose of indexation as on 1.4.1981 more than the one determined by the DVO. Thus, the AO was not possessing any material which can suggest that the value declared by the assessee was less than the fair market value as on 1.4.1981. Therefore, it requires to be re-determined. In the above situation, he cannot make a reference under section 55A to the DVO, and if the reference cannot be made, then cogni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hai Patel ₹ 53,50,000/- iii) Late Hansaben Shankarbhai ₹ 67,50,000/- i) Shirishbhai Shankarbhai Patel ii) Jigneshbhai Sl Patel iii) Anilbhai S. Patel each 1/3 iv) Dhirajben Pravinbhai Patel ₹ 63,50,000/- 5. Smt. Dhirajben Pravinbhai Patel has shown her share in the sale proceeds at ₹ 63,50,000/- in her computation of income. She has taken the value of said land at ₹ 37,71,870/- as on 1.4.1981. Her share was 1/5th. She had computed indexed cost of acquisition at ₹ 58,56,870/- and computed long term capital at ₹ 4,93,130/-. Similarly, Smt. Shardaben Chimanbhai Patel has also shown long term capital gain of ₹ 4,15,129/-. The ld.AO has made a reference to the valuation offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on ble jurisdictional high Court in the case of Gauranginiben S. Shodhan (supra) and has held that if the value declared by an assessee as on 1.4.1981 on the strength of registered valuer s report is more than the fair market value sought to be determined by the AO, then reference under section 55A for determining fair market value by the DVO cannot be sent. The discussion made by the Tribunal reads as under: 10. I have duly considered the rival contention and gone through the record. Short issue for my adjudication is, whether reference to the DVO made by the Assessing Officer was within the parameter of law or not ? Before I advert to the facts of present case, I would like to make reference to relevant part of the decision of Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the asset and other relevant circumstances, it is necessary so to do. Sub-clause(i) of clause (b) also for the same reasons recorded above, would have no bearing on the fair market value as on 1,4.1981. The Assessing Officer had not resorted to sub-clause(ii) of clause (b). In any case, clause (b) would apply where clause(a) does not apply since it starts with the expression in any other case . In other words if assessee has relied upon a Registered Valuer's Report, Assessing Officer can proceed only under clause (a) and clause (b) would not be applicable, 16. In the present case, admittedly the assessee had relied on the estimate made by the Registered Valuer for the purpose of supporting its value of the asset. Any such situ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the value of the assets 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 01.04.1981 than reference can be made. In the present case the value adopted by the assessee on the basis of registered valuer was not less than fair market value rather it was on the higher side. The Assessing Officer wants to reduce the value i.e cost of acquisition as on 01.04.1981. It is not permissible prior to the amendment carried out in the section 55A. Whether this amendment can be taken into consideration for this assessment year i.e 2008-09 is concerned. This aspect covered by the decision of Bombay High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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