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Facts
The assessee's appeal for assessment year 2008-09 arose against the CIT(A)'s order, which upheld the assessment made under section 143(3) of the Income-tax Act, 1961. The lower authorities rejected the assessee's registered valuer's report for computing long-term capital gains.
Held
The Tribunal held that if the cost of acquisition claimed by the assessee, as per the registered valuer's report, is not found to be less than the fair market value under section 55A(a) (prior to the 2012 amendment), then the departmental authorities cannot disregard it.
Key Issues
Whether the rejection of the assessee's registered valuer's report for computing long-term capital gains was justified when the cost of acquisition was not less than the fair market value.
Sections Cited
143(3), 55A(a)
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Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI SATBEER SINGH GODARA & SHRI MANOJ KUMAR AGGARWAL
ORDER
Per Satbeer Singh Godara, Judicial Member:
This assessee’s appeal for assessment year 2008-09, arises against the Commissioner of Income-tax (Appeals)-III [in short the “CIT(A)”], Kanpur’s order in appeal no. 71/IT/2010-11/Gwl dated 04.03.2016, involving proceedings under section 143(3) of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties at length. Case file perused.
It emerges during the course of hearing that both the learned lower authorities have rejected the assessee’s registered valuer’s report for the purpose of computing the long-term capital gains in the course of assessment framed on 25.10.2010 as upheld in the lower appellate discussion.
That being the case, we are of the considered view that once such a cost of acquisition claimed by the assessee as per his registered valuer’s report is not held as “less than the fair market value” in section 55A(a0 before amendment vide Finance Act, 2012 w.e.f. 01.07.2012, as applicable in the relevant financial year 2007-08, no such recourse could be taken by the learned departmental authorities in light of CIT Vs. Puja Prints (2014) taxmann.com 247 (Bom.). We thus find no merit in the impugned computation of the assessee’s long-term capital gains made by the learned lower authorities. Ordered accordingly. The assessee succeeds on this legal ground in very terms.
This assessee’s appeal is allowed.
Order pronounced in the open court on 17.02.2025.