Vasantiben Chimanbhai Patel Vs DCIT (ITAT Ahmedabad)
When Co-owner’s Value Fixed by DVO, Same Must Apply – Tribunal Grants Relief in 50C Dispute; 50C Addition Reworked – ITAT Directs AO to Apply DVO Valuation Already Adopted in Co-owner’s Case
Ahmedabad Tribunal restored matter to AO with direction to recompute capital gains by adopting DVO valuation already made in case of co-owners of the same property.
Assessee, engaged in dairy farming & brokerage, originally filed return declaring income of Rs.3.80 lakh. Information was received that land at Jambua, Vadodara was sold for Rs.1.02 crore while stamp duty valuation was Rs.4.23 crore. Assessee held 15% share. AO reopened assessment u/s 147 & added Rs.63.53 lakh u/s 50C as difference on stamp valuation, rejecting Assessee’s claim that land was treated as stock-in-trade & surplus already offered as business income. CIT(A) confirmed addition, holding reference to DVO not mandatory.
Before Tribunal, Assessee relied on valuation report of DVO dated 29.09.2017 in case of co-owners, where property was valued at Rs.1.57 crore as on 27.06.2011, resulting in Assessee’s share at Rs.23.55 lakh. Tribunal noted that Revenue did not dispute existence of DVO’s report & that in co-owner’s case addition was made only to extent of Rs.15.15 lakh as capital gain. It held that in fairness, same valuation must apply in Assessee’s case.
