Kiranbhai Jamnadas Sheth (HUF) Vs ACIT (ITAT Rajkot)
Conclusion
Cost Of Acquisition – When AO cannot refer to DVO, he has to accept the valuation report of the registered valuer of the assessee and adopt the value accordingly.
Cost Of Improvement – Proper documents needs to be submitted with regard to cost of improvement and in absence of the same cost of improvement cannot be accepted.
Deduction U/S 54 – In absence of registered sale deed, the house boat purchased cannot be said as residential house and hence deduction u/s 54 cannot be allowed. Further The same cannot be equated with the residential house which is immovable property and hence deduction u/s 54 not allowed.
FACTS –
Cost Of Acquisition – Assessee sold a flat and computed capital gain by taking indexed cost of acquisition on the basis of value adopted as on 1st April, 1981 at INR 2200 per sq. ft. of the built up area of 1675 sq. ft. as reported by their registered valuer.
AO objected the value adopted considering the same as on higher side and referred the matter to the departmental valuation officer (DVO) u/s 55A. AO computed cost of acquisition at INR 1750 per sq. ft. of the carpet area of 1340 sq. ft.
