ABHAY SAPRU,NEW DELHI vs. ACIT, CIRCLE- 30(1), NEW DELHI

This is an appeal filed by the assessee against the order dated 14.07.2017, impugned herein, passed by the learned Commissioner of Income-tax (Appeals)-10, New Delhi (in short ‘ld. Commissioner’) u/s. 250(6) of the Income-tax Act, 1961 (in short ‘the Act’) for the assessment year 2013-14.

[2]

2.1 The Assessing Officer had taken into consideration the aforesaid two valuation reports for determination of the issue of capital gain and rejected the report of the DVO on the ground that the DVO did not even inspect the property from inside, as the premises was locked and therefore, the valuation of cost of construction is without basis by the DVO and cannot be accepted. The Assessing Officer further observed that it is not binding upon the Assessing Officer to accept the valuation by the DVO in totoespecially when it is shown that the valuation was without basis. Ultimately, the valuation of the cost of construction by the DVO was rejected by the Assessing Officer and the value of Rs.7.68.000/- was taken as cost of construction as determined by the Govt. approved valuer(vide valuation report dated 15th June, 2012) who was engaged by the Assessee. Consequently, the amount of Rs.24,26,285/- was added as an addition to the income

[3] of the assessee on the ground that the land rate of the property was inflated by the assessee to suppress the capital gain.

2.2 The Assessee, being aggrieved, challenged the said addition before the ld. Commissioner who vide impugned order affirmed the same by dismissing the appeal of the assessee by holding “ That the valuation report submitted by the assessee reflects that the market value as on 01.04.1981 has been taken as Rs.8250/- per sq. meters whereas the Assessing Officer was in the possession of official market value rate of 1981 as per notification of land and development office, Ministry of Urban Development dated 21.10.1881 (as referred in para 4.1 by the ld. Commissioner) which provides schedule of market rate of land in Delhi as on 01.04.1991 for both the residential property as well as commercial were at rs.2000/- per sq. Meter. On finding huge variation, the Assessing Officer sought justification from the government approved valuer who was appointed by the Assessee to provide supporting documents in respect of its valuation report which the Government approved valuer submitted its reply before the Assessing Officer without providing any documents. The Assessing Officer, though rejected the valuation done by such approved valuer, however, adopted the value of the cost of construction as Rs.7,68,000/- as shown by the assessee in his submissions as the correct figure and proceeded to complete the assessment by making addition of Rs.24,26,285/-.”

The ld. Commissioner by observing that the Assessing Officer has rightly relied on the valuation of the assessee in regard to the [4] cost of construction at Rs.7,68,000/- as shown by the assessee in the valuation report, finally held that in view of the above discussion, the ratio of judicial pronouncements referred above, assessment framed u/s. 143(3) by the Assessing Officer and on the basis of detailed submissions forwarded by the ld. AR, the action of the Assessing Officer does not require any interference, hence, action of the Assessing Officer is hereby approved.

[5]