2024 (1) TMI 165

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....ench on hearing dated 19.12.2023. The grounds are as under: 1. That the Ld. CIT(A) has erred in law and on facts in adopting the value of the property at B-6, Sector-8, Noida at Rs. 6,38,58,500/- as per section 50C of the Act by taking into account the date of registration of sale instead of adopting the value of the said property at Rs. 5,50,00,000/-, as it existed at the time of finalization of deal for sale. 2. That the Ld. CIT(A) has erred in law and on facts in adopting the revised circle rates which came into effect from 01.08.2014 to a sale deal agreed upon before such date. 3. That the appellant craves leave to add, alter, amend and delete any of the grounds of appeal." 3. The dispute in the present appeal is confined to taxa....

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....hat though negotiations for both the properties were finalized keeping in view the circle rate of Rs. 34,000/- per sq. mtr., which was prevailing at relevant point of time, however, by the time registration of property at B-6, Sector-8, Noida could take place, the circle rate was revised to Rs. 40,000/- per. sqr. mtr. w.e.f. 1st August, 2014. It was submitted, since one of the partners of the assessee firm was suffering from terminal illness due to the cancer, sale deed for the property at B-6, Sector-8, Noida could not be executed prior to 1st August, 2014, whereas, the property at B-39, Sector-8, Noida was sold prior to 1st August, 2014. It was submitted, the property at B-6, Sector-8, Noida was also surrounded by slums thereby affecting ....

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....he issue arising for consideration before us is, what should be the fair market value (FMV) of the disputed property on the date of execution of sale deed on 12/01/2015. Facts on record reveal that the assessee had two properties at sector-8, Noida. One was at B-6 and other one at B- 39. The property at B-6 was admeasuring 1218 sq. mtr. whereas the property at B-39 was admeasuring 341.54 sq. mtr.. The property at B-6 being larger in size was sold for consideration of Rs. 5,50,00,000/- at Rs. 45,156/- per sq. mtr.. Whereas, the property at B-39, being relatively smaller one, was sold for consideration of Rs. 1,10,00,000/- at Rs. 32,258/- per sq. mtr. While Assessing Officer has accepted the sale consideration received qua the property at B-3....

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....d by the DVO works out to only Rs. 88,58,500/-, which is much less compared to the difference in valuation between SVA and DVO. It is fairly well known that the valuation of property involves some kind of guess work and estimation and there cannot be any consensus in the opinion of two valuers. This fact is very much evident from three different FMVs determined by three valuers. 9. Keeping in perspective the aforesaid factual position, if we examine the relevant facts, it is to be seen that the assessee has brought on record the mitigating circumstances resulting in sale of the property for the actual sale consideration of Rs. 5,50,00,000/-. We have further noted that in the same locality the assessee had two properties, one was sold at Rs....