Manishabne Kaizad Motawala Vs TTO (ITAT Surat)
Minor Valuation Difference Cannot Justify Capital Gains Addition: ITAT Surat Accepts Registered Valuer’s Cost of Acquisition
The Surat Bench (SMC) of the ITAT allowed the assessee’s appeal for AY 2022-23, deleting the addition made on account of difference in cost of acquisition of ancestral property as on 01.04.2001. The assessee had adopted a value of ₹1,100 per sq. meter based on a Registered Valuer’s report, whereas the Assessing Officer, relying on the DVO’s report, adopted a slightly lower value of ₹1,000 per sq. meter and made an addition to long-term capital gains.
The Tribunal noted that the difference was purely marginal and based on estimation, and more importantly, that in the case of co-owners of the very same property, the Department itself had accepted the valuation of ₹1,100 per sq. meter. In one such co-owner’s case, the AO had accepted the registered valuer’s report even after calling for a DVO report.
Holding that such inconsistent treatment and minor variation in estimation cannot be a valid basis for addition, the ITAT deleted the impugned addition and allowed the appeal of the assessee.
FULL TEXT OF THE ORDER OF ITAT SURAT
The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 04/06/2025 passed u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2022-2023.
