TaxTMI 
TaxTMI 
2020 (9) TMI 815
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.... portal. 2. Ld. CIT(A) grossly erred not considering the situation of land which is situated in ecological zone on which section 50C or DLC rate nor applicable as compared with other land." 2. The hearing of the appeal was concluded through video conference in view of the prevailing situation of Covid-19 Pandemic. 3. Rival contentions have been heard and record perused. Facts in brief are that the assessee is an, individual and running printing press in the name of M/s Anita Printers regularly file her income tax return and during the Assessment Year assessee sold an immovable property vide registered sale deed for a total consideration of Rs. 75,00,000.00 which was valued by sub-registrar at Rs. 1,75,94,778.00 and on the objection of a....
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....notices which was issued from portal mentioned in assessment proceeding sheet except notice of 143(2) of IT Act. Chart detail are as per (PB Page No. 20). (iii) That there is also not mentioned in the assessment order that notice u/s 143(2) of IT Act has been issued. We submit there is no evidence that notice u/s 143(2) of IT Act has been originated. (iv) As per CBDT Circular No. F.No. 225/157/2017/ITA.11 dt 23.06.2017 notice u/s 143(2) of IT Act can be issued in the revised format generated through ITBA portal. (PB Page No. 21 to 25). (v) When we took the grounds of appeal before the Ld. CIT (A) about the not issuing of Notice u/s 143(2) of IT Act than Ld A.O. submitted a manual notice receipt by son of assessee, although we have s....
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.... with other land 7. On the other hand, the ld DR has contended that the A.O. has issued notice U/s 143(2) of the Act and in the remand proceedings, copy was sent to the ld. CIT(A). With regard to merit, she has contended that the A.O. has correctly valued the land as per the rate adopted by the Sub-Registrar. 8. We have considered the rival contentions and carefully gone through the orders of the authorities below and found from the record that during the course of assessment proceedings U/s 143(3)/148 of the Act, the A.O. has enhanced capital gain by taking value as determined by the Sub-Registrar. However, the assessee has filed objection then the matter was referred to the DVO. However, the DVO done valuation without considering the fa....
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....ter resources etc. to avoid its further depletion and deterioration in the area." So above land is not useable for residential purpose and commercial purpose. (Copy of order of Ground water authority are placed at PB Page No. 35 to 37. (iii) Plotting and Housing activities completely restricted by JDA in ecological zone. (iv) Assessee can use the land for some specified purposes notified by local authority, but minimum 12-meter road is necessary. In assessee's land only 3-4-meter road available which is also not official road. (v) In the above Ecological Zone water bodies, Regional Park, Botanical Garden, Orchard & Nursery, Zoological Garden, Swimming Pool, Play Ground, Farm House, Outdoor Stadium, Gas Godown and some other activiti....
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....e of land at Rs. 8,68,252/- which gives the land rate of Rs. 1,540/- per sq. yd. (8,68,252 divided by 563.80), being a corner plot. The ld. CIT(A) has sought the opinion of DVO who had provided the land rate of Shiv Marg, Bani Park and Madhao Singh Road, Bani Park as on 01.04.1981 at Rs. 60/- sq. mtr. and Rs. 167/- sq. mtr. Respectively. Thus there is a wide gap in land rate as given by Registered Valuer and actual sale instances cited by the DVO. The Registered Valuer had simply stated in the Valuation Report that the rate of land as on 01-04-1981 is Rs. 1400/- per sq. yard based on local survey. No sale instance is quoted to arrive at such rate by Registered Valuer. Thus Registered Valuer's valuation of land @ Rs. 1400/- per square yard i....
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....ated property. In the case in hand, when the sale instances are available and which support the case of the assessee that the fair market value of the property cannot be more than the purchase consideration, then no addition is called for under section 56(2)(viii) of the Act. The addition by the AO and sustained by the ld. CIT (A) is deleted. In the result, the appeal of the assessee is allowed. 10. In view of the above discussion, it is very much clear that the DVO has taken excessive rate without considering the average rate i.e. Rs. 9,28,300.00 and taken Rs. 22,20,625.00 per Bigha which is more than double of prevailing Market rate. Judicious view should be taken for valuation of land and true valuation is Rs. 9,28,300.00 per bigha as....