MOON STAR BEACH RESORTS PRIVATE LIMITED,CHENNAI vs. DCIT CORPORATE CIRCLE 4(1), CHENNAI

O R D E R

PER V. DURGA RAO, JUDICIAL MEMBER:

On appeal, the ld. CIT(A) has considered the issue and held as under: “7. The submission of the assessee is considered. It is seen that the Government of Tamil Nadu had raised the guideline value several times between 2012 to 2017. The guideline value of the property sold was at Rs.750/- per sq.ft. as on 31.3.2012. This has been increased several times to Rs.3,000/- per sq.ft. from 1.4.2012 onwards. This steep and unreasonable increase in the guideline value rate had been modified from 9.6.2017 to Rs.2000/- per sq.ft. in the same area. As per the valuation report given by the Learned Valuation Officer, the valuation of 12,000 sq.ft. of land has been taken at an average value of Rs.2100/- per sq.ft. However, it is seen that the revised valuation applicable from 9.7.2017 has not been given credence to. The valuation officer appears to have allowed discount over the valuation initially taken at Rs.3000/ sq.ft. The value of the land was expected to marginally increase from year to year and not decrease over the years. The fixation of guideline value as above is a classic case of unscientific fixation of guideline value by the local authorities. Considering the arbitrariness in the valuation fixed and any possible harm to the assessee on account of such whimsical and arbitrary fixation of guideline value, the Assessing Officer is directed to take the value at Rs.2,000/- per sq.ft. for 12,000/- sq.ft. with a gross value of Rs.2,40,00,000/- for the entire property. The assessee gets partial relief and the grounds of appeal of the assessee are partially accepted.”

3. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. We find that the DVO has considered value of the property at ₹.2,100/- per sq.ft. and the ld. CIT(A) has considered the value of the property at ₹.2,000/- per sq.ft. and accordingly relief was granted. We find that after DVO valuation report also, the ld. CIT(A) has granted relief to the assessee. The assessee has not been able to point out any mistake in the order passed by the ld. CIT(A). Accordingly, the ground raised by the assessee is dismissed.