Comparable sales instances of commercial properties is no deciding factor in determining valuation of residential flat: HC

THE ISSUE BEFORE THE COURT IS - Whether comparable sales instances of commercial properties can be a deciding factor in determining valuation of a residential flat. NO is the verdict.

Facts of the case:

The Revenue preferred the present appeal challenging the order, whereby the ITAT had deleted the addition made by AO u/s 69B of I-T Act, of Rs.1,06,18,870/- ignoring the comparable prevailing rates of the properties of the same locality and the valuation report of the said property obtained from the DVO as per Section 55A.

On appeal, the HC held that,

++ it has been observed by the Tribunal that the comparable sales instances produced on record are of commercial properties and the property in question is a residential flat. The explanation given by the assessee has been considered by the Tribunal. The assessee has given explanation that after 1981, the said property was lying vacant, the property was ill-reputed inasmuch as the Municipal Corporation had issued notice u/s 52 of the MRTP Act for illegal possession. The agreement of sale is also produced on record. The initial burden is upon the Revenue. The explanation given by the assessee is required to be considered objectively. Considering the explanation given by the assessee, the Tribunal has arrived at a reasonable and plausible conclusion