Allowing the appeal the Tribunal held that the assessee had declared the fair market value as on April 1, 1981 at Rs. 21,58,689 which was higher than the estimate made by the Departmental Valuation Officer as well as estimated by the Assessing Officer while framing assessment and estimating at Rs.\u200270,664. The amendment in section\u00a055A(a)\u00a0of the\u00a0Income-tax Act, 1961\u00a0by the\u00a0Finance Act, 2012\u00a0with effect from July 1, 2012 substituted the words \u201cis at variance with its fair market value\u201d in place of \u201cis less than its fair market value\u201d. Reference can be made to the Departmental Valuation Officer only where the value of capital assets shown by the assessee is less than its fair market value but if the value of capital asset shown is more than the fair market value, reference cannot be made. The assessee having declared the value as on April 1, 1981 at Rs. 21,58,689 and the value determined by the Departmental Valuation Officer being less than that at Rs. 27,000, the value adopted by the Departmental Valuation Officer could not be taken for computing fair market value. Hence, the orders of lower authorities were not sustainable.(AY.2010-11)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 55A : Capital gains-Reference to Valuation Officer-Computation-Cost of acquisition-Value as on 1-4-1981-Reference To Valuation Officer-Amendment With Effect From 1-7-2012-Substitution of words is at variance with its fair market value for is less than its fair market value-Reference can be made to Departmental valuation Officer only where value shown by assessee is less than fair market value-Declaring value as on 1-4-1981 at figure higher than value determined by Departmental Valuation Officer-Value adopted by Departmental Valuation Officer could not be taken for computing fair market value.[S.45,55A(a)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-50003","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-d0v","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50003","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=50003"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50003\/revisions"}],"predecessor-version":[{"id":50009,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50003\/revisions\/50009"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=50003"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=50003"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=50003"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}