Smt. Kaushikaben Nimeshbhai Patel Vs ITO (ITAT Surat)
The assessee filed an appeal before the Income Tax Appellate Tribunal (ITAT), Surat, challenging the order of the Commissioner of Income Tax (Appeals) for Assessment Year 2012-13. The primary dispute concerned the validity of a reference made under Section 55A of the Income-tax Act for determining the fair market value (FMV) of land as on 01.04.1981 and the consequent computation of long-term capital gains (LTCG).
The assessee had sold agricultural land during the relevant period and adopted the FMV as on 01.04.1981 at ₹750 per square metre based on a valuation report prepared by a Government-approved valuer. The Assessing Officer, however, referred the matter to the District Valuation Officer (DVO), who determined the value at ₹35.89 per square metre. Based on the DVO’s valuation, the Assessing Officer computed LTCG of ₹75,26,327 and made an addition, as the assessee had disclosed nil capital gains in the return. The Commissioner (Appeals) upheld the assessment order.
Before the Tribunal, the assessee contended that the issue was covered by the Tribunal’s earlier decision in Ranchodbhai C. Patel and Rakshaben Jayantibhai Patel. It was argued that the amendment to Section 55A(a) introduced by the Finance Act, 2012 with effect from 01.07.2012 could not be applied to transactions falling in Assessment Year 2012-13. The assessee maintained that the reference to the DVO was therefore invalid.
