9911796707
TMI Blog2023 (7) TMI 801X X X X Extracts X X X X X X X X Extracts X X X X ..... .2001 than the value estimated by the DVO - HELD THAT:- AO noted that this property was inherited by the assessee from his parents who had purchased the property in 1967/69. Since the property was purchased prior to 1st April, 2001, the assessee got it valued from a registered valuer and used the value for determining tax payable on long term capital gain arising from this transaction. AO accepted the FMV as on 01.04.2001 as determined by the registered valuer of the assessee. Similarly, in the case of Ms. Poonam Sachdev, sister of the assessee, the assessment for AY 2019-20 was completed on 28.09.2021 after complete scrutiny under CASS without making any addition, though the assessee had declared 1/3rd share of capital gain arising from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant ought to have been accepted and made the basis for estimating/determining FMV of house property. c) DVO's report as issued for estimation of FMV of house property suffers from various legal and factual infirmities. d) Various objections as raised by the Appellant for challenging acceptance of DVO's report have not been fully considered or dealt with by the AO/DKP. e) Even directions of DRP vide their order under section 1440(5) of the Act for considering the specific objections raised against DVO's report have not been fully appreciated or dealt with by the AO in the final assessment order. f) Addition under the head 'long term capital gain cannot be made solely on the basis of estimate o DVO. g) Principles of natural justice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 270A(2) as initiated for alleged under-reporting of income is not applicable on the facts and under the law in Appellant's case." 3. Ground Nos. 1 to 5 relate to addition of Rs. 2,23,23,116/- towards long term capital gains on sale of residential property. The facts in brief are that the assessee a non resident individual filed her return for AY 2019-20 electronically on 07.08.2019 declaring income of Rs. 20,63,210/-. Her case was selected for scrutiny under CASS. During assessment proceedings, the Ld. AO found that the assessee had sold a residential property and had shown a sale consideration of Rs. 18 crore. On perusal of the assessee's submission, the Ld. AO noticed that property was inherited and its valuation was carried out on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal income of Rs. 2,43,86,326/- including therein addition of Rs. 2,23,23,116/- under the head "Long Term Capital Gain". 4. Aggrieved, the assessee is in appeal before the Tribunal. 5. It is a stay granted matter. 6. The Ld. AR made lengthy submissions and filed a synopsis of his arguments which has been taken on record. While supporting the FMV of the property as on 01.04.2001 determined by the registered valuer, the Ld. AR pointed out that the DVO has mechanically taken average rates of two other sale instances situated in the same area without applying his mind with respect to location and other favourable factors of the land valued by him. Moreover, copies of registered sale deed of both the sale instances relied upon by DVO have not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and her sister have equal 1/3rd share. The property was sold in the previous year relevant to AY 2019-20 for a total consideration of Rs. 18 crores. Since the property was purchased by her parents prior to 1st April, 2001, the co-owners opted to adopt FMV of the property as on 1st April, 2001 for the purpose of computation of long term capital gain. The assessee along with other co-owners got the property valued by the registered valuer as on 01.04.2001 who determined the FMV of the entire property at Rs. 3,50,16,612/- as on 01.04.2001. Copy of the valuation report appears at page 50-56 of the Paper Book. Accordingly, the assessee computed the long term capital gain of her 1/3rd share at Rs. 2,73,33,333/- (page 25 of the Paper Book) which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e.g. three side open and preferentially located. It was explained therein that the assessee's property commanded a much higher rate as on 01.04.2001 than the value estimated by the DVO. It was also brought to the notice of the Ld. AO in this reply letter that the FMV as on 01.04.2001 as declared on the basis of assessee's valuation report has been accepted in the case of her two other joint co-owners vide assessment orders framed under section 143(3) of the Act. Therefore, there is no justification for adopting a lower FMV in the case of the assessee merely on the basis of estimation made by DVO. 8.2 In para 5 of the assessment order, the Ld. AO only says that the above reply of the assessee is considered. Nothing has been controverted by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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