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2016 (12) TMI 950 - ITAT JAIPURAddition of Long term capital gain - sale of plot - determination of price - fair market value of the property - Held that:- It is observed that in the Master Development Plan - 2011 of the JDA, this plot was shown for residential purposes. The registered document also mentions that the plot was only for residential purpose. JDA Patta and Site Plan also show that plot was for residential purpose. However, spot inspection report shows that this plot was of capable of being exploited for commercial purposes as surrounding properties were being used for commercial purposes. The stamp Valuation authority has adopted the commercial rate for valuation of the Plot. The assessee's request to convert the land to commercial was declined by JDA. Thus the location of the plot was capable to be utilized for commercial purposes but legally the plot was not commercial. This is also a fact that there is a difference in market value of the authorized commercial property and illegally used for commercial purposes. This fact has not been taken into consideration while arriving at the fair market value of the plot on the date of transfer for the purpose of provisions of Section 50C of the Act. Therefore, in the interest of justice and equity, the issue is restored to the file of the AO to decide it afresh after ascertaining the fair market value of the property with due weightage given to the fact that plot was not a commercial plot but capable to be illegally exploited for commercial purposes. Thus the appeal of the assessee is allowed for statistical purposes.
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