Mukeshbhai Ramubhai Ahir Vs ITO (ITAT Surat)
The appeal before the Income Tax Appellate Tribunal (ITAT), Surat, arose from an order of the Commissioner of Income Tax (Appeals)-2, Surat, for Assessment Year 2012-13. The assessee challenged the adoption of the fair market value (FMV) of land as on 01.04.1981 based on the Departmental Valuation Officer’s (DVO) report instead of the valuation provided by a Government-approved valuer. The assessee also challenged the non-admission of additional valuation evidence by the CIT(A).
At the outset, the assessee did not press the ground relating to the reopening of assessment under Section 147, and that ground was dismissed.
The assessee had sold land on 06.09.2011 and computed long-term capital gains by adopting the FMV of the land as on 01.04.1981 at ₹350 per square metre based on a report from a Government-approved valuer. The Assessing Officer considered the valuation excessive and referred the matter to the DVO. The DVO determined the FMV at ₹48 per square metre. Relying on the DVO’s report, the Assessing Officer recalculated the capital gains and made an addition after allowing deduction under Section 54B.
Before the CIT(A), the assessee produced an additional valuation report from another registered valuer estimating the FMV at ₹225 per square metre. The CIT(A) declined to admit the additional evidence and upheld the addition made by the Assessing Officer.
