2015 (3) TMI 1065

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....ncome for A.Y. 2007-08 on 28.03.2008 declaring total loss of Rs. 30,43,280/-. The case was selected for scrutiny and thereafter the assessment was framed under section 143(3) vide order dated 30.12.2009 and the total income was determined at Rs. 1,02,22,030/-. Aggrieved by the order of A.O., Assessee carried the matter before ld. CIT(A) who vide order dated 20.12.2010 allowed the appeal of the Assessee. Aggrieved by the aforesaid order of ld. CIT(A), Revenue is now in appeal before us and has raised the following grounds:- 1. The Id. Commissioner of Income-tax (A)-XV, Ahmedabad has erred in law and on facts in deleting the addition of Rs. 70,16,582/-made by the Assessing Officer on account of Long Term Capital Gain (LTCG) on sale of open l....

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....d that the DVO vide his report dated 30.12.2009 determined the value of the property as on 1.04.1981 at Rs. 44,265/- as against Rs. 25,10,000/- worked out by the registered valued. He therefore after considering the valuation report, worked out the Assessee's share of long term capital gain at Rs. 1,54,84,045/- and after giving the credit of the value shown by the Assessee made an addition of Rs. 70,16,582/-. Aggrieved by the order of A.O., Assessee carried the matter before ld. CIT(A) who after considering the submissions of the Assessee deleted the addition by holding as under:- 5. During the course of appellate proceedings it was argued that sale consideration was not doubted by the AO that according to the A.O the value of land as ....

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....sed by the DVO is shown at Rs. 3,97,000 which.is less than the fair market value shown by the assessee as on 1st April, 1981. Therefore cl.(a) of S.55A cannot be made applicable. Clause (b) of S.55A can be invoked only in any other case namely when the value of the asset claimed by the assessee is not supported by an estimate made by a registered valuer." In the conclusion Hon'ble High Court stated as under:- "Conclusion: Reference made by AO under S, 55A to DVO on 26th April 1996, for determining the value of property as on 1st April, 1981 and on the date of sale was without jurisdiction for the reasons that return was filed by assessee only on 27th Aug., 1996, value of property as on 1st April 1981, as declared by assessee suppor....