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TMI Blog2024 (6) TMI 1346X X X X Extracts X X X X X X X X Extracts X X X X ..... n estimate which is not based on full facts of the case. As fairly well known that the valuation of property involves some kind of guess work and estimation and this fact is very much evident from the valuation report of DVO. It is also a fact that the rate of property even in the same locality differs depending upon locational advantages and other factors. In the instant case, the DVO has not accepted the entire factors of the assessee`s case, as noted by us in above para. We note that determination of fair market value, after all, is an estimate only and therefore, considering the facts and circumstances of the assessee`s case, as noted above, we are of the view that ends of justice would be meet if an addition of Rs. 50,00,000/- is sustained in the hands of the assessee, as the same would take care of the inconsistencies between DVO report and price of property adopted by the assessee. Therefore, we direct the assessing officer to make/sustain the addition in the hands of the assessee - Appeal filed by the assessee is allowed partly - SHRI PAWAN SINGH, JM And DR. A. L. SAINI, AM For the Appellant : Shri P. M. Jagasheth, CA For the Respondent by Shri Ravinder Sindhu, CIT(DR) OR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rty Dastavej No. Date of Dastavej Sale Consideration 1 R.S. No. 181,199 Block No. 149, Amroli 13/2013 02-01-2013 Rs. 7,14,31,200/- To verify the value as per Stamp Valuation authority, notice u/s 133(6) issued to the Sub Registrar, Palsana on dated 20.02.2015. The reply from the sub registrar office is received by assessing officer on dated 20.02.2015 stating the value of the property at Rs. 11,90,52,000/-. Difference of the stamp value and sales consideration are as under: Stamp Value Rs. 11,90,52,000/- Sales Consideration Rs. 7,14,31,200/- Difference Rs. 4,76,20,800/- Therefore, assessee vide show-cause notice dated 20.02.2015, was required to show cause as to why the difference of the sales consideration vis- a- vis the stamp value of Rs. 4,76,20,800/- should not be added to sale consideration for the purpose of the Capital gains as per section 50C of the I.T. Act. 4. In response, the assessee, vide his submission dated 23.02.2015, submitted before the assessing officer, as follows: The assessee had sold the property on market rate but the stamp duty transaction as on date of transfer was higher than the market rate, hence we request your honor to refer the same to the departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chemicals from nearby factory has almost made the land barren and of no use. Hence we request your good self to accept our document value instead of adopted by department valuation officer. 2. In respect details regarding exemption claimed u/s. 54F of Income Tax, 1961 we would like to submit that the assessee has purchased residential property of Rs. 6.50 crores and same has been claimed as exemption u/s 54F. Copy of registered Kabja Sahit no Satakhat/ Agreement to Sale is attached herewith. Also attached is account copy from Sanjay Shah evidencing payment of money for buying the property. 7. However, the assessing officer has rejected the contention of the assessee and noted that it was upon the request of the assessee that the reference to the DVO was made. The report of the DVO estimates the value at an amount far less than that by the Stamp Valuing Authority. The assessee did not seem to be happy even with that. The assessing officer compared the provisions of section 50C(2) of the Act, with Wealth Tax Act and stated that provisions of section 50C(2) of the I.T. Act abundantly make it clear that the value estimated by the DVO is binding upon the Assessing officer so far as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case laws relied upon, and perused the facts of the case including the findings of the ld. CIT(A) and other material brought on record. We note that DVO in determining the FMV of the property has considered only two special observations/qualifications i.e. the agriculture land being deep from the village main road and about 1 to 2 kilometers on kachcha village road and it is adjacent to Sugar factory giving fall smell and affecting crop production. According to the ld Counsel for the assessee, there is water logging on the land during monsoon, due to dyeing and printing units in the close proximity results in chemical contamination of the land making it useless for agriculture or residence has not been considered by DVO. The assessee has submitted before the assessing officer that the-sale price of above mentioned land, was substantially affected by the following factors: (a) The Sugar Factory is situated near the land. The land gets affected with intense smell of molasses burning and pungent smell of sugarcane brewing. Moreover, the polluting water and waste of the sugar factory gets dump in my land. (b) The land is affected by much larger Waterways near land. It becomes water l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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