CLIFFORD MENEZES,MUMBAI vs. ASST CIT 19(2), MUMBAI

During hearing, the ld. counsel for the assessee, Shri Deepak Tralashwala, contended that the factual matrix was not considered by the authorities in a required manner because the area of the flat, as per the agreement is different, whereas, the valuation authority valued the capital gain as the area of the flat is 1000 Sq. Ft. which needs verification. It was explained by the ld. counsel that the actual area of the flat is 698.725 Sq. Ft., as per the plan sanctioned by BMC, whereas, the ld. Assessing Officer took the area at 1000 Sq. Ft. for valuation, thus, the valuation adopted by the Stamp Duty Valuation Authorities is not the true basis for calculating the capital gain. The ld. DR, though defended the addition but did not controvert the assertion of the assessee for getting the area of the flat to be measured again.

2.1. We have considered the rival submissions and perused the material available on record. The facts, in brief, are that the assessee is an individual declared income of Rs.24,16,374/- and later on filed revised return declaring income at Rs.30,58,081/-. The ld. Assessing Officer determined the income at Rs.71,42,780/-. The assessee sold a flat number 101, Dattar Apartment, Vakola, Mumbai and declared long term capital gain in his computation of income, declaring gain of Rs.6,41,709/-. This stamp duly valuation authority, on the basis of AIR information adopted the value at Rs.67,31,000/-. The assessee furnished the copy of the purchases agreement dated 18/09/1991 and also leave and license agreement for the property. The claim of the assessee is that area of the flat was wrongly taken as 1000 Sq. Ft. against the actual area of 698 Sq. Ft. Without going income much deliberation, we are of the view, that in the interest of justice, the exact area of the flat has to be calculated first so as to arrive at a correct figure in accordance with law, thus, we direct the Assessing Officer to examine the claim of the assessee and after providing a due opportunity of being heard decide in accordance with law. The ld. Assessing Officer is further directed to measure the actual area of the flat, documentary evidence, if any and then decide the issue. Thus, this appeal is allowed for statistical purposes.