2017 (12) TMI 134

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....d in allowing 50% of Rs. 4,52,530/- under the head 'expenditure over share transaction' which was disallowed by the AO ignoring the fact that no evidence was every submitted by the assessee during the entire course of assessment proceedings in support of the said expenditure? (B) Whether, in the facts and circumstances of the case and in law, the learned ITAT erred in law and fact in adopting the cost of acquisition of flat at Mumbai as on 01.04.1981 at Rs. 1,05,02,677/- against Rs. 10,00,000/- that had been adopted by the AO on the basis of gift deed on the basis of gift deed dated 10.12.1999 ignoring the fact that the donor at the time of gift to the assessee declared the value of flat at Rs. 10 lacs? (C) Whether, in the facts....

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....s. 6,50,00,000/-. For the purpose of computation of the capital gains, the assessee relied on the provision of Section 55(2)(b)(ii). She disclosed the value of the flat in question, as on 1.4.1981 at Rs. 1,05,02,677/- on the basis of a valuation report prepared and submitted by the Kapoor & Associate, an approved valuer. The Assessing Officer disbelieved the aforesaid valuation report submitted by the assessee in support of her claim (as to cost of acquisition of the flat property) on the reasoning that the assessee had not led any evidence in support of the valuation report, such as circle rate etc. The assessee carried the matter in appeal. The CIT (Appeals) allowed the appeal of the assessee and upon appeal by the revenue the Tribunal ....

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....ital gains. In this regard, Section 55 (2)(b)(ii) reads as under:- 55.(1)............. (2) For the purposes of sections 48 and 49, "cost of acquisition" (a)................ (b) in relation to any other capital asset,- (ii) where the capital asset became the property of the assessee by any of the modes specified in sub-section 1 of Section 49, and the capital asset became the property of the previous owner before the first day of April, 1981, means the cost of the capital asset to the previous owner or the fair market value of the asset on the first day of April, 1981, at the option of the assessee." From the plain reading of the aforesaid provision, it is clear that the legislature first contemplated a situation where the assess....

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.... other hand, the Act does not require that the opinion of the approved valuer should have been supported with further evidence in the shape of circle rate or exemplar sale deeds etc. There is nothing on record to doubt the correctness of the report or its contents. The Tribunal has found that in absence of any evidence to doubt the correctness of the approved valuer's report the same should have been accepted by the department. Once, the Act had given the option to the assessee and the assessee had acted in accordance thereof and exercised her option to rely on the fair market value of the assets as on 1.4.1981 which she duly supported with evidence, it was not open to the Assessing Officer to take a different view. Further, the fact....