2026 (4) TMI 332

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....ear 2016-17. 2. The assessee has raised the following grounds of appeal: 1. The learned CIT(Appeal) erred in law and on facts in considering deemed cost of property as on 01.04.1981 at Rs. 18,07,032/- as determined by DVO in place of Rs. 37,84,000/- adopted by the Appellant on the basis of registered approval valuer's report, inspite of the fact that the said value of registered valuer was accepted in the assessment of C-owner of the property. It is submitted that it be held now and the deemed cost of acquisition at Rs. 37,84,000/- be considered for the purpose of computation of capital gain. 2. The Learned CIT(Appeals) erred in law and on fact in rejecting the claim of Appellant for deduction u/s.54EC for a sum of Rs. ....

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....Officer held that the market value of the property as per DVO was Rs. 6,45,24,490/- and the assessee claimed that fair market value, as determined by the DVO is higher and requested to adopt value amount of Rs. 5,56,26,000/- determined in the case of other co-owners by the DVO. The Assessing Officer computed long term capital gain at Rs. 1,20,30,661/-, the Assessing Officer further disallowed deduction u/s.54EC of the Income Tax Act thereby stating that assessee received an amount of Rs. 3,58,00,000/- as on 13.07.2015 i.e date of transfer whereas the investment made by the assessee on 11.04.2018 in the Rural Electrification Corporation limited bond only. Thus, the assessee failed to make investment in specific bond within the stipulated tim....

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.... of Rs. 5,56,26,000/-) 6. The Ld.AR submitted that the same treatment as given in assessee's co-owner by the Revenue should be taken into account. Besides this the Ld.AR further submitted that the AO has categorically mentioned in the Assessment Order that the DVO has adopted the value of land at Rs. 5,56,26,000/- and not that of market value of the property for stamp duty i.e 6,45,24,490/-. The Ld.AR submitted that the deemed cost of acquisition as on 01.04.1981 was only of Rs. 6,02,344/- as in deed assessee 1/3 share and index cost of acquisition for Assessment Year 2016-17 was that of 65,11,339/-. Thus, the Ld.AR submitted that valuation adopted by the Assessing Officer defers significantly from the valuation accepted for other co-own....