2020 (12) TMI 726
X X X X Extracts X X X X
X X X X Extracts X X X X
....operty by the assessee for the purpose of computing the Long Term Capital Gain (LTCG). The undisputed facts are that the assessee sold 4 acres of land situated in S.No.4 /P16, Kurubarahalli Village, Kasaba Taluk, Mysore District, on 07.09.2010 for a consideration of Rs. 80 lakhs. Admittedly, the value of the property sold for the purpose of stamp duty and registration was adopted at Rs. 160 lakhs. 3. Sec.50-C(1) Income Tax Act, 1961 (hereinafter called 'the Act'), provides that where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, is less than the value adopted or assessed or assessable by any authority of a State Government for the purpose of payment of stamp duty in respect of such t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....report dated 28.08.2018 in which he has outlined the basis of evaluation which is as follows: "8.0 Comments of the undersigned 8 1 Following are the comments of undersigned based upon the documents submitted by the assessee, documents received from the concerned SRO and site inspection: 1. The PUC is located at the outskirt of the Mysore city, facing the road, leading to Chamundi Temple, which is one of the prominent places of Mysore. 2. Services like water supply, drainage etc. were not evident in the locality. 3. Neither any construction nor constructed structures were found in the locality 4. The assessee submitted copy of a notification dated 03/04/2006, issued by MUDA (Mysore Urban Development Authority). During scrutiny of....
X X X X Extracts X X X X
X X X X Extracts X X X X
..../2006. Subsequent to short listing the comparable transactions, following observations were made with regard to rate of transaction: a. Rate of one transaction was above prevailing guideline rate. b. Few transactions occurred at par with prevailing guideline rate. c. More than 50% of the shortlisted transactions occured at much lowerrate than prevailing guideline rate. 9. In view above stated observations, undersigned deemed fit to determine average rate of all the shortlisted properties in order to determine fair market value of the PUC with time factorisation. 10. The assessee submitted details of 3 transactions in order to justify her rate of consideration. During scrutinizing the details of transaction received from the concer....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he final report of the DVO in which the DVO arrived at the valuation of Rs. 95,68,400/- based on the 9 sale instances which are given as Annexure to this order. 9. Learned Counsel pointed out that in second sale instance given in the annexed chart, the valuation is very high in as much as 6 acres of land and the very same survey No. had been sold for a sum of Rs. 4,80,00,000/- giving an average rate of Rs. 80 lakhs per acre. If this sale instance which is a very extraordinary sale instance is excluded, then the average rate per acre to be adopted would be much less. It was submitted by him that a very comparison of the second sale instance with the other 8 sale instances given in the chart would show that the same is an extraordinary insta....