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of <h1>Tribunal emphasizes fair property valuation, adjusts deductions to reflect accurate market value.</h1> The Tribunal partially allowed the assessee's appeal, emphasizing the importance of accurately considering negative factors in property valuation. The ... Capital gain computation - reference to DVO - fair market value determination - Held that:- There is a merit in the argument of the assessee in respect of the land adjacent to cemetery, instead of 10%, 15% should have been granted. Insofar as passing of electrical wires, DVO considered 5%, in my opinion, he should have been granted 10%. So far as property is away from village, there is no merit in the argument of the the assessee. In this respect, find that 5% deduction considered by the DVO is fair and reasonable. The DVO overall by considering the negative factors, he has considered 20% deduction while ascertaining the fair market value, by considering the facts and circumstances of the case and also negative facts, he should have been granted overall 30% deduction. It is just and fair to allow 30% deduction instead of 20% granted by the DVO by considering the negative factors to the land. Therefore, the order passed by the CIT(A) is set aside and direct the Assessing Officer to calculate the capital gains in view of the above finding. - Appeal filed by the assessee is partly allowed. Issues:1. Application of section 50C of the Income Tax Act, 1961 for determining the fair market value of a property sold by the assessee.2. Discrepancies in the valuation report provided by the Departmental Valuation Officer (DVO) and objections raised by the assessee regarding deductions for negative factors like proximity to a cemetery, high tension wires, and distance from the village.3. Assessment of fair market value and capital gains calculation based on the DVO's valuation and objections raised by the assessee.Issue 1: Application of section 50C of the Income Tax ActThe Assessing Officer questioned the sale consideration of a property and applied section 50C of the Income Tax Act, 1961, based on the Stamp Valuation Authority's (SRO) value. The assessee requested a reference to the Departmental Valuation Officer (DVO) to determine the fair market value due to discrepancies.Issue 2: Discrepancies in Valuation Report and Objections RaisedThe DVO estimated the fair market value of the property after considering objections raised by the assessee, including proximity to a cemetery, high tension wires passing over the site, and distance from the village. The assessee contested the deductions granted by the DVO, arguing for higher deductions for negative factors.Issue 3: Assessment of Fair Market Value and Capital Gains CalculationThe Commissioner of Income Tax (Appeals) upheld the Assessing Officer's order, prompting the assessee to appeal to the Tribunal. The Tribunal, after hearing both parties, found merit in the assessee's arguments regarding deductions for negative factors. The Tribunal adjusted the deductions granted by the DVO, increasing them to reflect the actual impact of the negative factors on the property's value. Consequently, the Tribunal set aside the CIT(A)'s order and directed the Assessing Officer to recalculate the capital gains based on the revised deductions.In conclusion, the Tribunal partially allowed the assessee's appeal, emphasizing the importance of accurately considering negative factors in property valuation. The judgment highlights the significance of fair market value determination and the need for proper assessment based on relevant objections and factors affecting property value.
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