2016 (10) TMI 1273

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....IT(A) erred in law and on facts in confirming valuation 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 read....

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.... plot of land in the year 1996-97 for Rs. 76,500/- and the same plot was converted 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 b....

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....r, developed and sold in assessment year 2010-11 and the assessee offered long term capital 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 th....

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....rovided in section 55A(b)(ii) of the Act.  The CBDT circular dated 25.11.1972 was held to be not applicable.  12. Following the above said proposition as laid down by the jurisdictional High Court and applying the same to the facts of the present case, in the instant case also, reference was made to the valuation officer in order to determine the fair market value as on date of conversion on the pretext that the fair market value as declared by the assessee which was backed by Registered Valuer Report, was higher, which is not correct. 13. The issue arising in the present appeal is squarely covered by the ratio laid down by the Hon'ble Bombay High Court in CIT Vs. Puja Prints (supra), which in turn has been followed by the T....