KABEER CHADHA,BILASPUR(CG) vs. THE DY.CIT-1(1), BILASPUR(CG)

PER RAM LAL NEGI, JM These appeals have been filed by the assessee against orders dated 07.10.2014 and 19.08.2014 passed by the Ld. Commissioner of Income Tax (Appeals), Bilaspur, for the assessment years 2010-11 and 2011-12 respectively, whereby the Ld. CIT (A) has dismissed both the appeals filed by the assessee against assessment orders passed 143 (3) of the Income Tax Act, 1961 (for short ‘the Act’).

total income of Rs. 31,77,430/-. Since, the case was selected for scrutiny, AO issued notice u/s 143 (2) and 142 (1) of the Act. In response to the said notices, the authorized representative of the assessee appeared and filed the written submissions. The AO noticed that during the year under consideration the assessee was engaged in the development of project of Sagar Homes at Uslampur and Sagar Parisar at Nehru Nagar, Bilaspur. The assessee during the year relevant to the assessment year under consideration sold jointly owned land admeasuring 48717 Sq. ft. for a total consideration of Rs. 94,80,400/-. The assessee claimed deduction in respect of indexed cost of acquisition at Rs. 53,88,100/- and worked out the total long term capital gain at Rs. 40,92,300/- and offered his share of long term capital gain i.e. Rs. 20,46,150/-. However, the AO on the basis of report of the DVO accepted the fair market value of the land as on 01.04.1980 @ Rs, 3,693/- per square acre and worked out the total long term capital gain in respect of the sale of the aforesaid land at Rs. 94,54,360/-. Accordingly, the AO made addition of Rs. 26,80,980/- to the income of the assessee as long term capital gain. Similarly, the AO made an addition of Rs. 30,630/- as long term capital gain in respect of sale of 765 Sq. ft. of floor area by taking the cost of land @ Rs. 3.63 per sq. ft. on the basis of report furnished by DVO the fair market value of the land as on 01.04.1981. In the first appeal, the Ld. CIT (A) confirmed the addition made by the AO and dismissed the appeal of the assessee.

term capital gain on the basis of valuation made by DVO which was obtained contrary to the provisions of section 55A of the Act, the Ld. CIT (A) has wrongly confirmed the addition made by the AO. We find marit in the argument of the Ld. counsel that since the Raipur Bench of ITAT has decided the identical issues in favour of the assessee in the assessee’s own case, the Ld. CIT(A) ought to have decided the issues in favour the assessee in present case also. We notice that the Ld. CIT(A) has ITAT Bench, Raipur has decided the identical issue in favour of the assessee holding as under:- “5 We have heard the rival submissions and perused the material before us. The undisputed facts of the case are that the assessee had sold a part of land, that he got it valued by a registered valuer, that he adopted the value given in the valuation report of the plot as on 01.04.1981, that the AO was of the opinion that value shown by the assessee was very high and thus he had tried to avoid pay taxed on long term capital gains, that the AO collected information from the office of the