TaxTMI 
TaxTMI 
TaxTMI 
2021 (7) TMI 205
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....Associates for filing the appeals before the Hon'ble ITAT, Ahmedabad. However, appeals were not filed before the ITAT Ahmedabad Bench due to the mistakes and lapses on the part of Jinesh Shah, C.A of Shah Teelani and Assosicates. Hence, the assessee changed the authorized representative and appointed C.A. Shri Chetan L. Agarwal for filing appeals which had been filed on 04/02/2019, causing delay of 253 days in all three cases. The assessee submitted that there was no ill motive behind for not filing appeal in time. In this regard, he has also filed an affidavit dated 02/07/2020 stating the above reasons and requested to condone the delay which occurred due to administrative lapse on the part of his representative. At the time of hearing, the ld. DR left the issue for condoning the delay at the discretion of the Bench. 3. In view of the above, we notice that assesse had sufficient reason for not filing the said appeals before the ITAT, Ahmedabad Benches within the time prescribed. Therefore, we condone the delay of 253 days and proceed to adjudicate the appeals on merits. First we take up ITA No. 143/AHD/2019, an appeal by the assessee 4. The assessee has raised the following gro....
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....above the AO computed the long-term capital gain in the manner as detailed below: The long term capital gain is worked out as under: Sale consideration Rs. 2,50,88,000/- Less(i)Indexed cost of acquisition Rs. 95,33,505/- (ii) Transfer expenses Rs. 2,50,000/- (iii) Indexed cost Rs. 7,850/- Rs. 97,91,355/- Long Term Capital Gain Rs. 1,52,96,645/- 7.2 The aggrieved assessee preferred an appeal to the learned CIT (A). The assessee before the learned CIT (A) submitted that the valuer in his report for valuing the land in dispute as on 1 April 1981 has adopted the basis of increase in the gold price index as decided by the Reserve Bank of India. The valuer in his report has already mentioned that there were not available the specific instances of the sales of land directly comparable to the land in question. The references given by the valuer for the sale of land in his report were not used by him for deciding the value of the land in question as on 1 April 1981. Therefore, the AO erred in referring those instances of the sale of land for deciding the value of the land in question as on 1 April 1981. 7.3 The asses....
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....O under the provisions of section 55A of the Act but he cannot decided the value at his own. 9.3 The learned AR further submitted that the land in question was jointly held by the assessee along with co-owners being mother and brother namely Smt. Meenaben N. Patel and Shri Mitesh N. Patel. The property being the land admeasuring 10623 square meters was inherited. The ownership of the assessee in the property was limited to the extent of 25% whereas the shares of both the coowners being the mother and the brother stands at 50% and 25% respectively. The share of the assessee in the sale consideration stood at Rs. 62,72,000.00 only. In this connection the learned AR drew attention on pages 12 to 37 where the sales deed was placed on record. The learned AR also drew our attention on the assessment orders of the co-owners to justify that the capital gain was also assessed in the respective hands with respect to the land in question. The copies of the assessment orders of the co-owners are available on record. Accordingly, the learned AR contended that the entire amount of capital gain cannot be taxed in the hands of the assessee. 10. On the other hand the learned DR vehemently support....
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....n provide the basis for fixing the land values in 1981. The basis for fixing the land rates 1981 the gold price fixed by.; Reserve Bank of India was 167.00 per one gramme. The percentage increase is / was 100. While in 2002, it is/ was Rs. 506.00 per one gramme & percentage increase is/ was 302.99. At present i. e. on the date of sale deed executed & registered on April 2009, the price of gold was approx Rs. 1400/- per one gramme. It is approximately 838 times more as compared with/to the price of 1981. Besides the sale/purchase of gold does not involved any types of speculation. This basis considered to be fair and reasonable transaction. Hence it may be taken into consideration suitably for fixing assessing/estimating land rate suitably 11.4 However, the authorities below without rejecting the basis adopted by the valuer has referred the sales instances for determining the value of the land in question as on 1 April 1981. As such, these sales instances were rejected by the valuer himself and therefore in our considered view the authorities below erred in using these sales instances in valuing the property in question as on 1 April 1981. 11.5 Without prejudice to the above th....
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....sset claimed by the assessee is in accordance with the estimate made by the Registered Valuer, if the Assessing Officer was of the opinion that the value so claimed was less than its fair market value as on 1.4.1981. It would not be the case of the Assessing Officer that the value of the asset shown as on 1.4.1981 was less than the fair market value. Such clause, therefore, as it stood at the relevant time, had no application to the valuation as on 1.4.1981. We are conscious that with effect from 1.7.2012, the expression now used in clause (a) of section 55A is "is at variance with its fair market value". The situation may, therefore, be different after 1.7.2012. We are, however, concerned with the period prior thereto. Clause (b) of section 55A is in two parts and permits a reference to DVO if the Assessing Officer is of the opinion that (i) the fair market value of the asset exceeds the value of the asset so claimed by the assessee by more than such percentage of the value of the asset so claimed or by more than such amount as may be prescribed in this behalf; or (ii) that having regard to the nature of the asset and other relevant circumstances, it is necessary so to do. Sub-cla....
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....there was an amendment under the provisions of section 55A of the Act by the Finance Act 2012 which reads as under: [Reference to Valuation Officer. 7855A. With a view to ascertaining the fair market value of a capital asset for the purposes of this Chapter 79, the 80[Assessing] Officer may refer the valuation of capital asset to a Valuation Officer- (a) in a case where the value of the asset as claimed by the assessee is in accordance with the estimate made by a registered valuer, if the 80[Assessing] Officer is of opinion that the value so claimed 80a[is at variance with its fair market value]; (b) in any other case, if the 80[Assessing] Officer is of opinion- (i) that the fair market value of the asset exceeds the value of the asset as claimed by the assessee by more than such per centage81 of the value of the asset as so claimed or by more than such amount81 as may be prescribed in this behalf ; or (ii) that having regard to the nature of the asset and other relevant circumstances, it is necessary so to do, 11.9 A plain reading of the above-amended provisions reveals that the AO was given power to refer the matter to the valuation officer if he's of the opinion tha....