2026 (7) TMI 775

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.... Income-tax Act, 1961 (in short "the Act"). 2. The assessee has raised the following grounds of appeal: "1. The Hon. CIT(A) erred in determining long term capital gains on sale of 1/6th share in land bearing survey nos. 55(F), 58A/1, 25 & 26/1A, admeasuring about 82,690 sq. mtrs at village Malonde, Taluka Vasai, Dist. Palghar, under deed of conveyance dated 25.07.2012 at Rs. 1,26,46,745/-, by adopting low cost of acquisition, being the fair market value of land as on 01.04.1981 incorrectly determined at Rs. 188 per sq. mtr. under the revised report of District Valuation Officer, I.T. Department, Mumbai dated 27.08.2018, as against the actual fair market value of Rs. 400/- per sq. mtr. adopted by the appellant based on the report....

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....that the assessee had sold two parcels of land for substantial consideration and while computing capital gains had adopted fair market value as on 01.04.1981 at Rs. 400 per sq. mtr. on the basis of valuation report of a registered valuer, resulting into declaration of long term capital loss. The Assessing Officer, being of the view that the valuation adopted by the assessee was excessive, referred the matter to the District Valuation Officer (DVO). The DVO, after inspection of the property and considering certain sale instances, determined the fair market value as on 01.04.1981 at Rs. 14.28 per sq. mtr. The assessee objected to the valuation made by the DVO contending that the sale instances relied upon were not comparable and were situated....

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....) does not call for interference. 7. We have carefully considered the rival submissions and perused the record. It is an undisputed fact that there is substantial variation in the valuation determined by the DVO at different stages, i.e. Rs. 14.28 per sq. mtr. in the original report and Rs. 188 per sq. mtr. in the remand proceedings. Further, the comparable sale instances referred to by the DVO themselves indicate a higher range, which has not been reconciled with the final value adopted. 8. In our considered view, when comparable instances indicate a particular range, the valuation adopted ought to fall within a reasonable bandwidth of such range, unless there are distinguishing features justifying deviation. In the present case, nei....

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.... record any material to demonstrate that possession was handed over in part performance of contract or that the conditions of section 53A of the Transfer of Property Act were satisfied. In absence of such evidence, the date of registration assumes significance for determining the date of transfer. 13. Accordingly, we do not find any infirmity in the finding of the CIT(A) that the capital gains are taxable in A.Y. 2013-14. Ground No.2 is dismissed. Ground No.3 being without prejudice is covered by our findings in Ground No.1. 14. Ground No.4 relates to denial of exemption u/s 54F. The Ld. AR submitted that the appellate authorities are empowered to admit and adjudicate additional claims and relied upon the decision of the Hon'ble Supre....