2006 (10) TMI 264

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....e on the basis of the valuers report for the purpose of computing the capital gain on sale of land. The second grievance, which is inter connected is disallowance of expenses of Rs. 14,25,840 incurred on the capital asset sold by the assessee while computing the capital gain. 2. The brief facts on both the issues as noticed by the ld. Assessing Officer in the assessment order read as under :- "During the relevant previous year, the assessee-company has sold freehold land admeasuring 19400.04 sq.mt. bearing Survey No. 189, Hissa No. 1/1 part, 190 part, 192(1) part, 194(5) of village Majiwade, Taluka & Distt. Thane, situated within the limits of Thane Municipal Corporation. Since the above property was purchased by the company prior to ....

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....ssessee has not filed any details in respect of other development expenses claimed. It is also not clarified by the assessee that the expenses incurred were for the development of land which is sold as the total area of the land is 92,111 sq.yards. Hence expenses incurred in connection with the sale are disallowed. The assessee has purchased land as under : S.No. Date of Area Amount Rate per sq.   purchase     yard (a) 31-12-1974 3509 sq. yards Rs. 18,000 Rs. 5.12 (b) 31-7-1962 25000 sq. Rs. 43,750 Rs. 1.75     yards     (c) 23-5-1963 4240 sq.yards Rs. 7,420 Rs. 1.75  The value of the adjacent land in 1974 ....

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....egistered Valuers are being granted licence under Income-tax Act for preparing such reports. The report of a registered valuer pointing out valuation of capital asset is an expression of opinion of an expert. His report can be out rightly rejected if it is established that it is not a genuine report. Otherwise his report deserves to be considered while evaluating the other evidence available on record. The absence of the Registered Valuer can be one circumstance which can persuade a quasi-judicial authority to draw an adverse inference against the report. The ld.CIT(A) instead of disbelieving the report ought to have pointed out the specific defect in the report. It appears that the ld. first appellate authority emphasized on the fact that ....