Tribunal adjusts property valuation for capital gain, allows appeal & condones delay. AO to recalculate based on market value.

The Tribunal partly allowed the appellant's appeal by adjusting the property valuation for long term capital gain computation. The delay in filing the appeal was condoned, and the Tribunal directed the AO to recompute the long term capital gain based on a market value of &8377; 2,000 per sq.yard for property valuation. The order was pronounced on 12th October 2020.

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Issues:
1. Condonation of delay in filing the appeal.
2. Computation of long term capital gain based on property valuation.
3. Consideration of sale instances and objections for property valuation.

Condonation of Delay:
The appellant's appeal for the A.Y. 2008-09 was delayed by 13 days, which was condoned after the appellant filed an application with valid reasons and the Revenue did not oppose the delay. The Tribunal proceeded to decide the appeal after condoning the delay.

Computation of Long Term Capital Gain:
The appellant, an individual with no independent income source, sold a property for &8377; 4,00,000. The AO computed long term capital gain at &8377; 11,36,229 based on indexed cost of acquisition, indexed cost of improvement, and transfer expenses. The AO applied S.50C provisions due to the property's market value being &8377; 27,50,000. The CIT(A) directed the AO to adopt the Valuation Officer's valuation of &8377; 15.13 lakhs for property valuation, leading to a revised capital gain calculation.

Consideration of Sale Instances and Objections:
The appellant raised objections regarding the property valuation, citing deficiencies in the property's amenities and development restrictions. The CIT(A) directed the AO to consider the Valuation Officer's report valuing the property at &8377; 15.13 lakhs. During the hearing, the appellant's counsel argued for adopting the actual consideration received for capital gain computation, emphasizing discrepancies in the Valuation Officer's valuation methodology. The Tribunal considered the sale instances provided by the appellant and adopted a market value of &8377; 2,000 per sq.yard for property valuation, directing the AO to recompute the long term capital gain accordingly.

In conclusion, the Tribunal partly allowed the appellant's appeal by adjusting the property valuation for long term capital gain computation. The order was pronounced on 12th October 2020.

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