2019 (8) TMI 1752

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....ue is that the Ld. CIT (A) has erred by holding that the Valuation Officer's Report valuing the immovable property admeasuring 800 sq yds situated at Guttala Begumpet Village, Serilingampally, RR District, Plot No.17, Survey No. 10 [part], No.2- 80/1[p] at Rs. 98,80,000/-is appropriate. 3. Brief facts of the case are that the assessee is an individual engaged in trading of Raw Film filed his return of income for the AY 2012-13 on 27/9/2012 admitting his total income as Rs. 70,41,050/-. Initially the return was processed U/s. 143(1) of the Act and subsequently the case was taken up for scrutiny and the assessment was completed U/s. 143(3) vide order dated 23/3/2015 wherein amongst other additions, the Ld. AO invoking the provisions of sec....

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....section is applicable in cases where stamp duty has been paid for transfer. Moreover, this section also postulates that the fair market value may be different from the value adopted by the registration authority and in such cases, procedure for reference to valuation cell is provided. Hence, this section 50C was neither applicable nor it was the case of the revenue that any reference to valuation cell had been made or that your goodselves has obtained independent instances of comparable sales in that period, of that area." 5. However, since the Valuation Officer had valued the property at Rs. 98,80,000 after considering all the draw back in the land, the Ld. AO adopted the value determined by the Valuation Officer as the sale considerati....

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....e a number of years the market value of the property will be considerably less than the value determined by the Stamp Valuation Authority because normally valuation of the State Stamp Authority would be a pre-determined value based on the market value of the surrounding land having clear title. In the case of the assessee the Revenue has also accepted that the land sold by the assessee is a disputed land. Even in these circumstances the assessee was able to realise an amount of Rs. 72 lakhs on the sale of his litigated property the value of which was scaled down to Rs. 98,80,000 by the Valuation Officer as against the value of Rs. 1,04,60,000 determined by the State Stamp Valuation Officer. Thus, the sale value realised by the assessee is a....