Case Law Details
Shri Rama Jogi Reddy Sanepalli Vs ITO (ITAT Bangalore)
ITAT Pune Bench in the case of Ratnakanta B. Agarwal v. ITO, ITA 587/PUN/2014, order dated 24.07.2017 wherein the Hon’ble Pune Bench took the view that if the variance between the value estimated as fair market value by the DVO and the value adopted by the assessee is less than 5%, then no addition should be made since the matter of valuation is always based on estimation and some differences do occur.
I am of the view that the decision of the Pune Bench of the Tribunal rendered in the case of Ratnakanta B. Agarwal (supra) is applicable to the facts of the present case. Without going into the objections of the assessee with regard to the report of the DVO, I find that the difference in valuation as adopted by the DVO and the price paid for the property by the assessee is less than 5%. In the given circumstances, as held by the coordinate Bench of Pune Bench in the case of Smt. Ratnakanta B. Agarwal (supra), valuation is always a matter of estimation and the difference of less than 5% is only a difference which should be construed as a difference in estimation and the value adopted by the assessee should be accepted in such circumstances. Respectfully following the decision of the ITAT Pune Bench, I direct that the addition sustained by the CIT(Appeals) should be deleted.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal by the assessee is against the order dated 01.08.2018 of the CITA-2, Bengaluru relating to assessment year 2015-16.
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