TaxTMI 
TaxTMI 
2015 (6) TMI 59
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....ase and in law, the Commissioner of Income-tax (Appeals)-XXVI, New Delhi [briefly "the CIT(A)"] has erred in upholding the assessment of total income at Rs. 22,44,5701-. The assessee denies his liability to be assessed at the income ofRs.22,44,570/-. 2. That on the facts and circumstances of the case and in law, the CIT(A) has erred in holding that long term capital gain on sale of plot No.65-B, Roop Nagar Industrial Estate loni (UP) was rightly computed at Rs. 17, 73,417/-. 3. That on the facts and circumstances of the case and in law, the CIT(A) has erred in not appreciating that value determined by the AVO of plot No.65-B, Roop Nagar Industrial Estate loni (UP), which was a tenanted property and was sold to the person who was in ac....
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....ideration the sale value at Rs. 10,25,000/-the assessee in his computation calculated a capital loss at Rs. 25,683/-. Therefore, the Assessing Officer considered the sale value at Rs. 38,56,000/- in concurrence to the provisions laid in section 50C of the IT Act/ 1961. In compliance to the request made by the A.O. vide letter dated 02.08.2010 the Assessing Officer referred the property to the AVO, Meerut vide letter dated 09.08.2010/ u/s 50C(2) to determine the fair market value of the property. Vide report dated 13.12.2010, the AVO determined the fair market value of the property in question at Rs. 28,24,100/- .Thereafter on 16.12.2010/ the copy of the valuation report was forwarded to the assessee to offer his objections/comments. Vide le....
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....1 has dismissed the appeal of the assessee. 5. Against the order dated 18.10.2011 of the Ld. CIT(A) assessee is in appeal before the Tribunal. 6. Ld. Counsel of the assessee has reiterated the grounds of appeal and stated that it is res-integra that rent capitalization method is one of the recognized methods of valuing immovable property. Valuation of property is an issue that is relevant not only for the purposes of computation of capital gain but also for the purposes of levy of wealth tax, compulsory acquisition of property and pre-emptive purchase of properties. He also stated that the Hon'ble Jurisdictional High court in the case of CIT vs. New India Construction Co. (1980) 123 ITR 68 has considered the issue of appropriate metho....
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....rty must be self occupied is devoid of any merit. He also stated that in the case of CIT vs. New India Construction (Supra) it was held that where rent capitalization method was adopted to value the respective properties, the premises were fully tenanted. Therefore, the conclusion of the Valuation Officer that has been endorsed by the AO that for rent capitalization method can be applied where small proportion of the property is self occupied is against the legal possession because the method has regularly been applied to fully tenanted premises. 7. On the contrary, Ld. DR has relied upon the order of the authorities below and requested that the same may be upheld. 8. We have heard both parties and perused the relevant record availabl....
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.... adopted a detailed measurement method instead of rent capitalization method and secondly, the property was sold in distress. These objections were reproduced by the A.O. in the assessment order dated 28.12.2010. The objections raised by the assessee were considered and vide letter dated 20.12.2010 the Assessing Officer rejected the same. In the same letter, the A.O. show caused the assessee as to why the proposed valuation of Rs. 28,24,100/- should not be taken as sale consideration for calculating the capital gains. Through the assessee appeared on 22.12.2010, no reply to the said shown cause was forwarded to the Assessing Officer. Therefore, as the issue is within the ambit of section 50C and on request of the assessee u/s. 50C(2), the A....