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TMI Blog2021 (4) TMI 865X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the DVO of Rs. 1,61,13,000/- as against the value determined by the Stamp Duty Authority of Rs. 5,99,76,000/- without any discussion on the merits of the basis of valuation made by the DVO considering substantial difference of Rs. 4,35,44,100/- which was not justif ied considering that both the values have been determined by competent authorities for purpose of valuation of property. 2. Whether on the facts and in circumstances of the case and in law, the Ld. CIT(A) has erred in giving relief to the assessee without providing an opportunity to the AO for commenting upon the basis of the valuation of the DVO and acceptability thereof especially taking into consideration the huge difference in value determined by two competent authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 54F of the Act. Since the government value is Rs. 5,99,76,000/- therefore, the A.O found that there is difference in consideration reported in the sale deed and market value and applied the provisions of section 50C of the Act and recomputed the long term capital gains of Rs. 4,61,12,450/-and assessed the total income of Rs. 4,66,58,620/- and passed order u/s 143(3) of the Act on 27.12.2016. 3. Aggrieved by the order, the assesse has filed the appeal with the CIT(A). The Ld.CIT(A) considered the facts, grounds of appeal, findings of the A.O and DVO report and relied on the judicial decisions and allowed relief on the disputed issue by directing the A.O. to adopt value of sale as determined by the DVO and party allowed the appeal. Aggrieved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l on 24.01.2017 with the CIT(A). As per the observations of the CIT(A) the DVO report dated 10.03.2017 was sent to the A.O only after completion of assessment.The value determined by the DVO is Rs. 1,61,13,000/-.We find that the powers u/s 251 of the Act of the CIT(A) are co terminus with the A.O. therefore, the CIT(A) considered the provisions of law, DVO report and relied on the Hon'ble Tribunal decisions and granted relief to the assesse. We considered it appropriate to refer to the observations of CIT(A) at page 6 para 6.1 to 6.1.8 of the order. 6.1 Ground No. 1 6.1.1. The only effective ground raised by the appellant is regarding sale of the property situated at Pen, Maharashtra for an amount of Rs. 99,50,000/ and adoption of valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d disclosed sale consideration for her half share at Rs. 20 Lakhs and computed long term capital gains at nil by taking indexed cost of acguisition at Rs. 30.81 Lakhs - Assessing Officer noticed that stamp valuation of property was at Rs. 1.3 Crores - Accordingly, adopting stamp duty valuation, | Assessing Officer computed long term capital gain at Rs. 50.70 Lakhs towards share of assessee = On appeal, Commissioner (Appeals) referred matter to DVO for ascertaining fair market value of snid property and directed Assessing Officer to adopt value of property as per valuation by DVO - Fair market value as assessed by DVO was lower than value adopted by Stamp Duty Authorities - Whether value adopted by DVO had to be adopted by Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 50C(2) had value property lower than that of Registration Authority, Assessing Officer had to proceed with assessment in conformity with estimate given by Valuation Officer -Held, Yes [Para 7] [In Favour of Assessee] 6.1.6. Further reliance is placed on the judgment of hon'ble of IT AT Vishakhapatnam in the case of [2014] 45 taxmann.com 141 (Vishakhapatnam- Trib.) where in the hon'ble IT AT held as under: Section 50C of the Income-Tax Act, 1961 -Capital gains - Special provision for full value of consideration in certain cases (Valuation made by DVO) - Assessment year 2006-07 - Wliether where fair market value determined by DVO on a reference made by Assessing Officer in terms of sub-section (2) of Section 50C is less than val ..... X X X X Extracts X X X X X X X X Extracts X X X X
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