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Facts
The assessee sold an immovable property along with two other persons. The sale consideration was Rs. 24,65,00,000/-, while the stamp duty value was Rs. 37,32,71,500/-. A DVO report valued the property at Rs. 28,42,68,000/-, leading to an addition of Rs. 1,25,89,601/- as long-term capital gain.
Held
The Tribunal held that the Ld. CIT(A) correctly considered the recitals of the sale deed to dismiss the assessee's objection regarding the inclusion of the value of old construction. No reasons were found to interfere with the Ld. CIT(A)'s decision.
Key Issues
Whether the value of old construction should be included in the capital gains calculation when the DVO report does not specifically address its demolition or market value.
Sections Cited
143, 144B
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Income Tax Appellate Tribunal, “G” BENCH, DELHI
Before: SHRI ANUBHAV SHARMA & SHRI MANISH AGARWAL
O R D E R PER ANUBHAV SHARMA, JM:
This appeal is preferred by the assessee against the order dated 08.11.2024 of the Ld. National Faceless Appeal Centre (NFAC) Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No :
ITBA/NFAC/S/250/2024-25/1070196936(1) arising out of the order dated 09.09.2021 passed u/s 143 r.w.s 144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the National Faceless Assessment Centre, Delhi (hereinafter referred to as the “AO”) for AY: 2018-19.
None appeared for the assessee at the time of hearing and report is filed by the Ld. DR that the assessee was duly served by the notice which were handed over, thus no further opportunity of service is justified. The ld. DR was heard and record perused.
The case was selected for scrutiny assessment and it was found that assessee along with two other persons has sold immovable property for Rs.24,65,00,000/- whereas stamp duty value of the same was Rs.37,32,71,500/-. On request of assessee the DVO report was called who had valued the property at Rs. 28,42,68,000/-, accordingly, addition of Rs.1,25,89,601/- as long term capital gain was made which has been sustained by the ld. CIT(A).
The main contention of the assessee was that the inclusion of the value of old construction, as DVO report does not mention about the demolition of old structure and construction of new building and that old structure has not market value. Ld. CIT(A) has considered the recitals of sale deed to dismiss the objection and we find no reasons to interfere in the same. The appeal is dismissed.
Order pronounced in the open court on 28.11.2025