CHHANCHALBEN KANTILAL KANTHARIA,SURAT vs. INCOME TAX OFFICER WARD -1(3)(6), SURAT

This appeal filed by the Assessee is directed against the order of Commissioner of Income-Tax (Appeals)-II, Surat [in short “the CIT(A)”] dated 09-06-2017, for the assessment year 2013-14.

The substituted ground of appeal

Being aggrieved, the assessee carried the matter before the ld. CIT(A), wherein it was contended that the assessee has raised objection before the DVO against the rate of land of Rs.197/- per sq. mtr as the fair market value by the DVO as against the Registered Valuer of the assessee was determined at Rs.510/- per sq. mtr. It was further submitted that the AO has wrongly adopted the value determined by the DVO without considering the logical and valid objection by the assessee during the course of assessment Chhanchalben Kantilal Kantharia v. ITO, Ward-1(3)(6),Surat/ITA. 71/SRT/2017/A.Y.2013-14 Page 3 of 6 proceedings. The DVO failed to consider the issues raised by the assessee in her objection letter filed against the proposed valuation. He also did not consider the valuation report of another Government Approved Registered Valuer of Shri Rameshchandra Jain who has considered the rate of Rs.315/- per sq. mtr as on 01-04-1981. However, the CIT(A) observed that the assessee has contended that he had made another report from the approved valuer of Shri Rameshchandra Jain who has calculated the FMV (fair market value) at the rate of 315 per sq. mtr as on 01-04-1981 on the basis of comparable sales instances. However, the appellant has submitted a report of Registered Valuer of Shri P K Desai who was referred by the DVO by the AO to determine the FMV as on 01-04-1981. The DVO as per his report calculated the FMV, the rate of 197 per sq. mtr against the value declared by the Registered Valuer of Shri P K Desai at the rate of 510 per sq. mtr. The appellant’s submission of a fresh report of Registered Valuer of Shri Rameshchandra Jain at the appellate stage is a fresh evidence under Rule 46A of the IT Rules for which no reasons have been given. Hence, the same was not admitted as per provisions of Rule 46A of the I.T Rules. However, the ld. counsel submitted that the said report is duly mentioned at Para (VI) of the assessee’s submissions reproduced at Page 4 to 5 of the appellate order, wherein it is clearly stated that we have enclosed herewith the valuation report of income for agricultural land and as proposed a value of land at Rs.315/- per sq. mtr after considering the various factors affecting the value of land. This valuation was much higher than valuation determined by DVO and valuation is given by the DVO unreasonable and unjustifiable and very much on lower side. Therefore, it was requested that Chhanchalben Kantilal Kantharia v. ITO, Ward-1(3)(6),Surat/ITA. 71/SRT/2017/A.Y.2013-14 Page 4 of 6 the DVO has not appreciated by taking the value @197 per sq. mtr as on 01- 04-1981 as against the Registered Valuer report of the assessee at Rs.315/- & 510/- per sq. mtr. However, the CIT(A) was not considered the report of Rameshchandra Jain in Government Approved Registered Valuer who determined the land rate at 315 per sq. mtr after considering various factors as an evidential findings in Rule 46A. However, this report was very much before the AO, therefore, this report not in additional evidence as assumed by the ld. CIT(A). the ld. counsel further relied in the case of Heemaben Desai v. ITO, Ward-3, Surat and in ITA No. 3204/AHD/2016/(surat-Trib.) dated 21-02-2019 wherein the Surat Bench, Tribunal has considered the report of DVO and approved valuer and considered the average rate of three valuation report for taking FMV as on 01-04-1981 in similar circumstances. Therefore, it was requested that the fair market value as on 01-04-1981 may be considered by taking the average of these three reports that the DVO report, P K Desai report & Rameshchandra Jain report which have been taken the FMV @ 197, 315 & 510 per sq. mtr respectively as on 01-04-1981.

Per contra, the ld. Sr. DR relied on the order of the lower authorities and submitted the DVO as the final authority for making valuation.

We have heard the rival submissions and perused the relevant material available on record. We find that the dispute between the assessee and the AO is the rate at Rs.197 per sq. mtr as FMV as on 01-04-1981 by the DVO whereas the approved registered of the assessee Shri P K Desai has estimated the same rate @510 per sq. mtr and Shri Rameshchandra Jain has estimated the valuation of land @315 per sq. mtr as on 01-04-1981. Thus,