TaxTMI 
TaxTMI 
2020 (2) TMI 710
X X X X Extracts X X X X
X X X X Extracts X X X X
....5 and the total income was determined at Rs. 2,47,30,106/-. Aggrieved by the order of Assessing Officer, assessee carried the matter before Ld.CIT(A), who vide order dated 06.09.2016 (in appeal No.PN/CIT(A)-12/53/2015-16) granted partial relief to the assessee. Aggrieved by the order of Ld.CIT(A), assessee is now in appeal before us and has raised original grounds which have been later amended. The amended ground read as under: On the facts and circumstances of the case and in law: 1. The Hon CIT(A) erred in directing the AO to adopt value of Rs. 1,84,93,000/- as determined by the DVO as the full value of consideration under section 50C of the Income Tax Act in place of Rs. 1,65,00,000/- as per sale deed which is the market value for transfer of the assessee's rights in the subject property. The appellant pleads for directions to accept the sale consideration of Rs. 1,65,00,000/- actually received by the assessee for computing long term capital gain. 3. During the course of assessment proceedings, the Assessing Officer noticed that the assessee has sold rights in land along with shed thereon at C.S.No.2099, Western Highway, Vile Parle (East), Mumbai to M/s. Millenium Marbles ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rking out Long Term Capital Gains arising out of transfer of the property. Before the AO, the appellant disputed the valuation adopted by the Stamp Valuation Authority and contended that he was not the owner of the property as per the records and was only having incomplete rights by way of possession. The property was located in slum area and there was restriction on construction of high building as per orders of the Airport Authority of India. It was also submitted that shed constructed on the plot was temporary in nature and was quite old. Therefore, fair market value of shed at Rs. 91,77,033 adopted by the Stamp Valuation Authority was unrealistic. It was pleaded that consideration received of Rs. 1,65,00,000 was the fair, market value of the property. In view of these contentions, AO referred the valuation of the property to the DVO vide letter dated 09.03.2015 and on the same date order u/s 143(3) was passed determining capital gain after adopting sale consideration at Rs. 2,54,87,000. Appellant preferred appeal on 20.04.2015 and the DVO passed order u/s 50C on 29.07.2016 determining fair market value of the property at Rs. 1,84,93,000. 3.3 During the course of appellate pr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....consideration received of Rs. 1,65,00,000. I find contention of the appellant partly acceptable. The DVO after considering the factors adversely affecting the valuation like Nalla adjacent to the property, difficulty in evicting the existing tenant, height restrictions placed by the nearby Airport, determined the fair market value of property at Rs. 1,84,93,000 and therefore, AO is directed to adopt deemed sale consideration for purpose of computing capital gains u/s 50C at Rs. 1,84,93,000 in place of Rs. 2,54,87,000. However, I do not find any merit in the objections raised by the appellant regarding unrealistic valuation of structure by the DVO. Similar objection was raised by the appellant before the DVO which was considered by the DVO and dealt at para 8.1.2 reproduced below : "Objection 8.1.2 In the proposed valuation you have estimated the value of the shed/shop at Rs. 69,64,713 subject to discount for adverse factors. We submit the proposed value is excessive for the kind of structure that was in existence before sale more so since the buyer has not found any value in the structure and has demolished the same. Reply 8.1.2.1: The structured mentioned in the Agreeme....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ound 1 raised by the appellant is partly allowed." 4. Aggrieved by the order of CIT(A), the assessee is now in appeal before us. 5. Before us the ld. AR reiterated the submissions made before the Assessing Officer and CIT(A) and further submitted that the assessee was in possession of the land along with shed and shop standing thereon which was acquired by him at a cost of Rs. 4,42,560/- in F.Y. 1994-95. He submitted that as per the land records, property stands in the name of Mahanagar Bhumapan Adhikari, Government of Maharashtra meaning thereby that the assessee is not the legal owner of land and building under the Transfer of Property Act. He submitted that the land which has been sold off was already let out to M/s. Millenium Marbles Pvt. Ltd. and it was in the possession of Millenium Marbles. The fair value of the property as determined by Stamp Valuation Authority was Rs. 2,54,87,000/-. Before Assessing Officer, assessee disputed the valuation adopted by Stamp Valuation Authority for various reasons. The Assessing Officer thereafter referred the valuation to DVO who vide order dated 29.07.2016 passed u/s 50C of the Act determined the fair market value at Rs. 1,84,93,000/-.....