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2014 (3) TMI 263 - AT - Income TaxDetermination of fair market value of the property for the purpose of computation of capital gains – Held that:- The assessee has not been able to submit any evidence or any material to show that the FMV adopted by him, is the actual market value of the land as on 1.4.1981 - The assessee has not brought on record any comparable instances of sale of property in that locality, to show that the FMV adopted by him was the actual market value - In the absence of any material to substantiate its claim, the FMV cannot be accepted - When there is no material available on record, which could clearly establish the FMV of the land, in that locality, one has to go by a reasonable estimate – thus, the FMV adopted by the CIT(A) is fair and reasonable and needs no interference – Decided against Assessee. Source of funds - Availability of funds not accepted by the CIT(A) – Addition restricted to 50% - Held that:- Assessee claimed that the investment was made by him out of the sale proceeds from sale of gold jewellery, as well as salary income - It is quite evident from the order of the CIT(A) that he does not dispute the fact that the assessee’s explanation with regard to availability of fund from sale of gold jewellery cannot be rejected outright - CIT(A) has come to a conclusion that the savings from salary income itself would be sufficient to invest in the property at Noida, there is no reason why she should have disallowed 50% of the amount of investment claimed – thus, the disallowance made by the CIT(A) cannot be sustained, when she is satisfied that there was availability of fund with the assessee to make investment – the entire addition made by the Assessing Officer is set aside – Decided in favour of Assessee. Estimation of agricultural income – Held that:- CIT(A) held that the assessee himself has categorically stated that the agricultural income per year would be around Rs.3,000 per acre, and for five acres it would be Rs.15,000 - Considering this and the agricultural income disclosed for earlier and subsequent years, the same for the assessment year has been estimated at Rs.20,000 - In the absence of any material to the contrary brought on record by the assessee – there is no infirmity in the orders of the Revenue authorities on the issue – Decided against Assessee. Restriction of the addition to 50% - Unexplained investment in property – Held that:- CIT(A) restricted the disallowance to 50% of the investment claimed, by merely observing that the Assessing Officer has mentioned about discrepancies in the statement made by the assessee during the assessment proceedings - The CIT(A) having accepted the fact the assessee’s wife has received 150 tolas of gold jewellery, there is no reason why she should not have accepted the claim of the assessee in relation to the entire investment instead of restricting it to 50% - having accepted the source of funds, viz. sale of 150 tolas of gold, the entire investment should be treated as having been explained – thus, the order of the CIT(A) modified – Decided in favour of Assessee.
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