Jigneshkumar S. Modi (HUF) Vs ITO (ITAT Surat)
The ITAT Surat decided a batch of eight appeals concerning Assessment Year 2012-13, with the case of Jigneshkumar Sanmukhlal Modi (HUF) taken as the lead matter. The dispute related to the computation of long-term capital gains (LTCG) arising from the sale of land during Financial Year 2011-12. The assessee had adopted the fair market value (FMV) of the property as on 01.04.1981 at ₹380 per sq. meter based on a report of a Government-approved valuer. During reassessment proceedings, the Assessing Officer referred the matter to the District Valuation Officer (DVO) under Section 55A and the DVO determined the FMV at ₹10.19 per sq. meter. Based on the DVO’s report, the Assessing Officer recomputed the cost of acquisition and brought additional LTCG to tax.
The assessee challenged the validity of the reference made to the DVO, contending that the unamended provisions of Section 55A(a) applied to Assessment Year 2012-13. Under the pre-amendment provision, a reference to the DVO could be made only when the value claimed by the assessee was less than the fair market value. Since the assessee had adopted a value that was higher than the value subsequently determined by the DVO, the reference was argued to be invalid.
