TaxTMI 
TaxTMI 
2016 (11) TMI 744
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....ee. 3. Commissioner (Appeals) erred in not extending the opportunity of being heard to DVO. (36 Taxman.com 393 B'bay) 4. CIT(A) has erred in not appreciating that neither the stamp valuation Authority nor the valuation officer has taken into consideration vital aspect of disputed title of the Property being subjudice & adopting the Stamp Valuation. 5. a) CIT(A) has erred in adopting Fair Market Value of 01.04.1981 as per "Valuation Officer's Report" against Approved valuer's report. b) Reference to Valuation office for valuation of FMV as of 01.04.1981 is without Jurisdiction and bad in law. (By way of additional ground) 3. The assessee has also raised an additional ground of appeal, which reads as under:- "1. Reference to 'Valuation Officer' made by Assessing Officer for valuation to ascertain FMV of property as on 01/04/1981 is without jurisdiction and invalid. Appellant prays to hold that 'Valuation Officer' report for the same may please be ignored and FMV as per Approved Valuer's report be applied for computation of Capital Gain." 4. The issue arising in the present appeal is in relation to the computation of long term capital gains on sale of land at G....
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....laimed deduction under section 54F of the Act, which was allowed to the assessee and the income from long term capital gains was determined at Rs. 1,61,39,390/-. The assessee on the other hand, had disclosed long term capital loss of Rs. 1,29,690/-. 6. The CIT(A) forwarded the submissions of assessee to the Assessing Officer for his comments, who in turn, obtained the report from DVO. The DVO vide letter dated 12.09.2012 has sent his comments which are reproduced by the CIT(A) at pages 4 and 5 of the appellate order. The DVO stressed that the basis for arriving at the land rate was as per actual sale consideration and not on the basis of stamp valuation and further, the land sold by the assessee was not agricultural land though it was mentioned as agricultural land. Another point raised by the DVO was that in the sale deed, it was mentioned that the property was totally in the possession of seller and was free from encumbrances, litigations, etc. The CIT(A) vide para 6 held as under:- " 6 . I have carefully taken into consideration the facts, assessment order, submission of the appellant, DVO's letter dated 12/09/2012 and the material available on record. The appellant ha....
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....ed awaiting the final outcome of dispute. With respect to the additional ground of appeal, the learned Authorized Representative for the assessee pointed out that the issue raised was jurisdictional issue and the same merits to be admitted. It was pointed out by the learned Authorized Representative for the assessee that in view of ratio laid down by the Hon'ble Bombay High Court in CIT Vs. Puja Prints (2014) 360 ITR 697 (Bom), no reference can be made to the DVO for determining the value of property at a lesser value. 9. The learned Departmental Representative for the Revenue pointed out that no such plea was raised before the CIT(A) and hence, no merit in the claim of assessee. The learned Departmental Representative for the Revenue placed reliance on the orders of authorities below. 10. We have heard the rival contentions and perused the record. The assessee for the year under consideration had sold her agricultural land near Solapur for total consideration at Rs. 1,11,00,000/-. However, the valuation of the property was carried out by the Stamp Duty Valuation Authority at Rs. 1,99,57,350/- for the purpose of stamp duty. The assessee claims that the said land was received ....
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.... issue and dispute between the parties which had affected its market value; but all these issues were not considered by any of the authorities. In the totality of the above said facts and circumstances and following the principles of natural justice, we deem it fit to restore the issue of valuation of property as on date of sale, back to the file of Assessing Officer, who shall obtain the report from the DVO, who in turn, shall afford reasonable opportunity of hearing to the assessee before finalizing the valuation of aforesaid property. Accordingly, the matter is set -aside to the file of Assessing Officer to complete the proceedings of determination of value of property as on the date of sale by obtaining the report from DVO de novo on this account. The DVO is directed to consider various issues raised by the assessee before us and determine the market value in accordance with law. The Assessing Officer shall then compute income from long term capital gains in accordance with law. 12. Now, coming to the additional ground of appeal raised by the assessee i.e. reference to the DVO for determining the Fair Market Value of property as on 01.04.1981. The assessee had declared the v....