TaxTMI 
TaxTMI 
2017 (10) TMI 1475
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....rounds of appeal:- 1)Whether on the facts and in the circumstances of the case, the Ld. CIT(A)-1, Nashik is justified in deleting the addition of Rs. 48,42,862/- made by the AO on account of LTCG and not as per report of DVO by holding that the reference made by AO to the DVO u/s 55A of the Act itself was bad in law. 2)Whether on the facts and in the circumstances of the case, the Ld. CIT(A)-1, Nashik is justified in holding that amendment to section 55A is not retrospective and allowing assessee's claim when the issue of the amendment being applicable with retrospective effect was not in question. 3)Whether on the facts and in the circumstances of the case, the Ld. CIT(A)-1, Nashik failed to app....
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.... year under consideration had entered into sale transaction in respect of piece of land at Survey No.150, at Makhamalabad, Nashik on 05.08.2008. The assessee furnished the working of capital gains regarding the sale of property and worked out the indexed cost of acquisition at Rs. 1,60,59,301/- as against the sale value of Rs. 1.80 crores, the long term capital gains of Rs. 19,40,699/- was worked out. The Assessing Officer was of the view that the value submitted by the assessee as on 01.04.1981 was not acceptable. The Assessing Officer made reference to the Valuation Officer to determine the cost of acquisition as on 01.04.1981. The Assessing Officer did not receive the report of the Asst. Valuation Officer before c....
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....f the appellate order and held that since the issue involved in the present case was similar to the issue in CIT Vs. Puja Prints (supra) and following the decision of the jurisdictional High Court, the CIT(A) deleted the addition made by the Assessing Officer on account of long term capital gains. 6.The Revenue is in appeal against the order of CIT(A). 7.The learned Departmental Representative for the Revenue placed reliance on the order of Assessing Officer and pointed out that the valuation submitted by the assessee vis-à-vis cost of acquisition as on 01.04.1981 was higher. 8.The learned Authorized Representative for the assessee on the other hand, placing reliance on the ratio laid down by the Hon'ble....
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....5/- and worked out the indexed cost of acquisition at Rs. 3,76,409/-. The CIT(A) on the other hand, has relied on the ratio laid down by the Hon'ble Bombay High Court in CIT Vs. Puja Prints (supra). The dictate of the Hon'ble Bombay High Court is that reference could be made to the Departmental Valuation Officer only when the value adopted by the assessee was less than the fair market value. In case the value adopted by the assessee of any property was more than the fair market value as determined by the DVO, then such invocation of provisions of section 55A(a) of the Act was held to be not justified. Reference was also made to the amendment to section 55A(a) of the Act in 2012, wherein for the words "is less than th....