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TMI Blog2022 (11) TMI 1296X X X X Extracts X X X X X X X X Extracts X X X X ..... t challenge and was not permissible to make reference to the Departmental Valuation Officer for the purpose of valuation for 1/4/81 in view of sec. 55A of the Act for the Asst. Year 2011-12. 3.The Income Tax Officer as well as CIT(A)-III, Surat did not appreciate the fact that the value adopted for 1/4/81 was on the basis of one of the Most Senior Govt. Approved Valuer's Valuation Report and supported by sell instances of the same area. 4.The Assessing Officer as well as CIT(A) has considered the sell value as per the stamp duty paid and did not consider the actual sell consideration. 5. The AO, DVO and CIT(A) did not consider the fact that the same street has two different jantri rice and difference between both of them are more than 100% and still considered jantri price blindly and not the actual consideration was received. 6. The Assessing Officer as well as CIT(A) has not considered total investment of Rs.5,00,000/- in NHAI Bond which is exempted u/s 54EC of the Act against capital gain on sale of the property. 7. The CIT(A) has sent 3 notice u/s 250 of the Act on wrong address, last on the correct address, which was replied by the appellant but still passed the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... executed on 27.08.2010, the assessee was having 50% share in the said property. Thus, the assessee received Rs.16.25 lakh. However, the Stamp Valuation Authority determined the value of property for the purpose of stamp duty at Rs.46,22,176/-. Accordingly, the difference of Rs.13,72,176/- was found. The assessee being an owner of 50% share therefore, the difference of share of assessee was worked out at Rs.6,86,088/-. On further perusal of computation and statement of long term capital gains, the Assessing Officer noted that for property situated at 409, Ward-11 Surat, the assessee computed long term capital gains of Rs.2,12,892/- after taking cost of acquisition and indexation of Rs.1,62,108/-. In respect of other property situated at 1220, Ward-11, Surat, the assessee computed long term capital gains of Rs.3,47,660/- after taking cost of acquisition and indexation of Rs.12,77,340/-. Both the properties were acquired prior to 01.04.1981, therefore to support the cost of acquisition, the assessee furnished copy of valuation reports of both the properties by Shri C.C. Gandhi, Govt. Approved Valuer vide his report dated 19.10.2010, for determining fair market value of both the prope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .e. 114500*100/4.9) (ii) Fair Market Value of the property Rs. 5,84,184/- (to the extent of the share of the ae, i.e. 1/4th) Less: indexed cost of acquisition Rs. 7.11/- (Rs.1 x 711/100) Total long term capital gain Rs.5,84,177/- B. 1220, Ward 11, Surat (i) Fair Market Value of the property Rs.46,22,176/- (as per stamp duty paid i.e. 114500*100/4.9) (ii) Fair Market Value of the property Rs.23,11,088/- (to the extent of the share of the assessee, i.e. 1/2) Less: indexed cost of acquisition Rs.7.11/- (Rs 1 x 711/100) Total long term capital gain Rs.23,11,080/- Less: Less exemption claimed u/s 54EC Rs. 3,47,660/- Net long term capital gain Rs.19,63,420/- 5. The assessing officer on the basis of above working made addition of Rs.23,34,705/- (Rs.3,71,285/- + Rs.19,63,420/-). Aggrieved by the addition the assessee filed appeal before Ld. CIT(A), wherein the action of Assessing Officer was upheld. Further aggrieved assessee has filed present appeal before Tribunal. 6. I have heard the submission of the ld. Authorized Representative (AR) for the assessee and the Ld. Sr. Departmental Representative of the rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee's share is 25% (undisputed fact). Less: Indexed cost 91200 x 25% x 711/100 (1,62,108/-) Refer Note-1. LTCG on property Nondh no.409 3,33,567/- Full value of consideration of property Nondh no.1220 3250000 x 50% 16,25,000/- Assessee's share is 50% (undisputed fact). Refer Note-2. Less: indexed cost 359308 x 50% x 711/100 (12,77,340/- Refer Note-1. LTCG on property Nondh no.1220 3,47,660/- Total LTCG 333567 + 347660 6,81,227/- Less: deduction u/s 54EC (5,00,000/-) Refer Note-3. Net LTCG 1,81,227/- Income from other sources 23,869/- Total income 2,05,096/- Tax payable NIL Total income is less than basic exemption limit. 8. The Ld. AR for the assessee submits that assessee has already invested Rs.5 lakhs against the long term capital gains which is already accepted by Assessing Officer in its order rectified vide order dated 21.01.2022. The Ld. AR for the assessee further submits that if the contention raised by assessee is accepted i.e. reference qua the sale transaction prior to 01.07 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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