2023 (4) TMI 575

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.... separate Assessment order passed under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Year (A.Y) 2014-15. The main dispute is about the valuation of purchase of agricultural lands which is common in both the cases, hence both the appeals are disposed of by this common order. 2.1. The brief facts of the case is that the above two assessees are brothers who purchased a large piece of agricultural land comprising in Nine Survey Nos. for a consideration of Rs. 2,47,75,000/. On verification of the sale deeds, it is found that the Stamp Duty Valuation of all the agricultural lands amounting to Rs. 2,59,59,184/- which resulting in a difference of Rs. 11,84,184/-. The Assessing Offic....

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....ermined the total income and demanded tax thereon. 3. Aggrieved against the same, the assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) after considering the submissions of the assessee reduced the addition from Rs.11,53,674/- to Rs.5,21,500/- and held as follows: "Having considered the evidence produced by the assessee and having taken into account all the relevant materials gathered by me, I estimate the Fair. Market Value of the said property in respect of Shri Anilbhai Bhikhubhai Varotaria, Jamnagar as follows: Sr. Property Declared Value Estimated Value As On 1. R. S No. 176/2. Naghedi, Jamnagar. Rs. 20,00,000/- Rs. 20,00,000/- 31.03.2014 2. R. S No. 1 76/4. Naghedi, Jamnagar....

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..../-. Thus there is a difference of Rs. 2,73,500/- between the values of this property i.e. the value as determined by the departmental valuation officer and the value as declared by the assessee. Thus total difference of values as adopted by the departmental valuation officer and the value as declared by the assessee in respect of above two properties is coming to Rs. 5,21,500/-(i.e. Rs. 2,48,000/- + Rs. 2,73,500/-) which is more than 5% of the value of Rs. 60,80,000/- of such properties as declared by the appellant. In view of this the AO is directed to adopt the value of the property bearing RS. No. 177/6 at Rs. 32,88,000/- and value of the property bearing R S No. 177/7 at Rs. 33,13,500/- as determined by departmental valuation officer fo....

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....ship and agricultural land etc. hence addition is prejudicial and illegal and contrary to the fact of the case hence Rs 5,21,500/- retained by CIT Appeal from addition made by AO amounting to Rs.11,53,674/- may be deleted 2. Any other grounds presented with the permission of your honor at the time of hearing. 5. Ld. Counsel Mr. Mehul Ranpura appearing for the assessee submitted before us. The assessee purchased the agricultural land in different survey numbers jointly with his brother Anil B. Varotaria. Though this is a whole piece of agricultural land and for the sake of administrative convenience total 9 sale deeds were registered. When a big piece of land is purchased, some difference in valuation used occur based on the loca....