Jayantibhai Chimanbhai Patel Vs ITO (ITAT Surat)
The appeals were filed by two assessees against a common order of the Commissioner of Income Tax (Appeals), Surat, relating to Assessment Year 2012-13. Since the facts and issues were substantially similar, both appeals were heard together and decided through a consolidated order.
The assessees had challenged the adoption of the Departmental Valuation Officer’s (DVO) valuation for determining the fair market value of land as on 01.04.1981, instead of the valuation provided by a registered valuer. They also challenged the dismissal of their claim under Section 54B of the Income-tax Act and raised an additional legal ground that the reference made to the DVO under Section 55A was invalid because the relevant amendment to that provision was not applicable to transactions undertaken before 01.07.2012.
The Tribunal first condoned a delay of 29 days in filing the appeal, holding that the delay was neither intentional nor deliberate and that substantial justice should prevail over technical considerations.
On the merits, the Tribunal noted that the assessee had sold land during the financial year 2011-12 relevant to Assessment Year 2012-13. While computing long-term capital gains, the assessee adopted the fair market value as on 01.04.1981 at ₹300 per square metre based on a report of a Government-approved valuer. The Assessing Officer, however, relied on the DVO’s valuation, which determined lower values of ₹185 and ₹200 per square metre for different portions of the land.
