AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2022 (1) TMI 1102
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....ssing Officer (AO) under s. 143(3) r.w.s. 147 of the Income Tax Act, 1961 (the Act) concerning AY 2010-11. 2. The grounds of appeal raised by assessee read as under: "1. The Learned Commissioner of Income Tax (Appeals)-5, Ahmedabad has erred in confirming the action of the Assessing Officer in adopting the value of property as on 01.04.81 at Rs. 5,56,000/- as per the report of the Valuation Officer instead of value thereof as on 01.04.81 at Rs. 11,74,867/- as determined by the Valuation Officer u/s.55A(a) of the I.T. Act, 1961. 1.1 As per the provisions of sec.55A(a) of the Act. the Assessing Officer had no powers to refer the matter to his valuer for Asst. Year 2010-11. The amendment in section 55A(a) of the Act enabling the Assessing....
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.... valuer showing the cost of the said property as on 01.04.1981 at Rs. 35,24,600/- (l/3rd Rs.l 1,74,8677-). Accordingly, the AO referred the matter to the Valuation officer for estimation of value as on 01.04.1981. Thereafter, the assessee has also filed an application before the AO to take the sale consideration at Rs. 41,00,000/- as per the sale deed instead of Rs. 75,00,000/- value adopted by the Stamp Valuation Authority. The DVO estimated the property as on 01.04.1981, showing cost at Rs. 16,67,000/- (l/3rd Rs. 5,56,000/-) as on 01.04.1981 as against cost of Rs. 35,24,600/- as on 01.04.1981 claimed by the assessee and Rs. 44,01,000/- as on 06.05.2009 as against Rs. 75,00,000/- declared by the stamp valuation authority. Accordingly, the ....
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....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 [Assessing] Officer is of opinion that the value so claimed [is at variance with its fair market value]; (b ) in any other case, if the[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 percentage of the value of the asset as 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, and where any such reference is made, the provisions of sub-sections (2), (3), (4....
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....of October, 1997, the assessee received an undated notice from the DVO informing that on 26-4-1996 a reference had been made by the Assessing Officer under section 55A to him. The DVO, therefore, proposed to estimate the market value of the property as on 1-4-1981 at Rs. 3,97,000 as against Rs. 6,25,000 shown by the assessee and to estimate the fair market value of the property as on the date of valuation of the sale deed. The assessee filed writ petition challenging the aforesaid reference on the ground when no assessment was pending on date of making reference, reference was bad, in law; and that section 55A did not permit the authority to find out the fair market value of the property on the date of the sale." 5.2 The learned AR also ci....
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.... a valuation report - Assessing Officer was of view that value of property as adopted by assessee was high -Therefore, Assessing Officer referred issue of valuation to DVO who valued property at Rs. 6.68 lakh as on 1-4-1981 and indexed cost at Rs. 33.20 lakhs - Consequently, Assessing Officer by his assessment order enhanced capital gain of appellant - Whether law to be applied in instant case is section 55A(a) as existing during period relevant to assessment year 2006-07 wherein reference could be made to DVO only if value declared by assessee is in opinion of Assessing Officer less than its fair market value - Held, yes - Whether when value of property adopted by assessee was much more than fair market value even as determined by Departme....