Naimish Dhansukhlal Khandhana vs. ITO-4(1)

Parties Involved

Facts Summary

The case involves a dispute over the valuation of a property for the purpose of computing long-term capital gains. The appellant, Naimish Dhansukhlal Khandhana, had initially valued the property at Rs.400/- per square meter as on 01.04.1981. However, during the appellate proceedings, the Deputy Valuation Officer (DVO) revalued the property at Rs.188/- per square meter. The appellant filed an appeal against the order of the Commissioner of Income Tax (Appeals) for accepting the valuation report of the subsequent valuer without providing a clear reason. The Revenue also filed an appeal, arguing that the valuation made by the first valuer should be adopted. The Income Tax Appellate Tribunal (ITAT) found that the order of the Commissioner was cryptic and no reason was provided for accepting the second DVO's report. The Tribunal remanded the issue to the Commissioner with directions to follow the correct procedure and pass a speaking order.…

Legal Issues

• 1. Whether the Ld. CIT(A)’s reliance on the report of a subsequent valuer for computation of long term capital gains is correct.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

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