2016 (10) TMI 1273

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....ation of land on conversion into stock u/s 45(2) at Rs. 89,07,486/- as against Rs. 1,04,24,000/- claimed by the appellant on the basis of Registered Valuer's  Report. 2. The learned CIT(A) erred in law and on facts in not appreciating comparable instances quoted by the appellant that showed that the valuation made by the Registered Valuer was reasonable and had to be accepted. 3. The learned CIT(A) erred in law and on facts in adopting capital gains at Rs. 13,68,580/- and business profits at Rs. 18,18,432/- as against Rs. 28,85,094/- and Rs. 3,01,918/- respectively as claimed by the appellant. 3. The assessee has also raised an additional ground of appeal which reads as under:- "Whether on the facts and circumstances of the case....

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....ted into business asset during the financial year 2008-09.  The valuation of the said plot as per Registered Valuer on the date of conversion was Rs. 1,04,24,000/-.  The assessee declared the income on the said conversion of plot since the flats constructed in the building were sold in assessment year 2010-11.  The assessee had declared business profit of Rs. 3,01,918/- by taking market value of plot on conversion of asset at Rs. 1,04,24,000/-.  The Assessing Officer made reference to the Government Approved Valuer to determine the fair market value during the financial year 2008-09, which was arrived at Rs. 72,85,432/-.  The difference between the value shown by the assessee and value as computed by the DVO i.e. Rs....

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....ital gains on conversion of asset in the instant assessment year.  The assessee also offered business profits on sale of flats.  The assessee had debited market value of plot as per the valuation determined by the Registered Valuer on the date of conversion at Rs. 1,04,24,000/-.  The assessee thereafter, computed the long term capital gains at Rs. 1,01,27,180/- and after claiming exemption under section 54F of the Act, the taxable long term capital gains were shown at Rs. 28,85,094/-.  The cost of acquisition of said property which was purchased by the assessee in 1996-97 was Rs. 76,500/-.  The Assessing Officer was of the view that the valuation was without any basis since no sales instances were taken and hence re....