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2016 (9) TMI 1289 - AT - Income TaxComputation of capital gain - fair market value taken as on 01.04.1981 - AO disallowed the claim of the assessee on the basis of guideline value of Sub-Registrar - Held that:- Assessing Officer was expected to determine the fair market value as on 01.04.1981. Fair market value is nothing but a price that may be agreed between the willing purchaser and willing seller. Guideline value will not always reflect the market value. The guideline value is only to guide the Sub-Registrar to determine the market value for the purpose of collecting stamp duty. Therefore, this Tribunal is of the considered opinion that the guideline value of Sub-Registrar is one of the factors to be taken into consideration for the purpose of determining the fair market value as on 01.04.1981. Moreover, the location of the property, infrastructure facilities available around the property, public access to the property, distance between the bus stand, railway station, airport from the property, potential for future development, proximity to the schools, colleges and other public institutions, etc. are needed to be taken into consideration for the purpose of determining the fair market value. In the case before us, the property is admittedly located at Sarangapani Street, T. Nagar, which is one of the prime areas in the city of Chennai and there are several infrastructure facilities such as railway station, bus stand, market around the locality. There are schools, institutions and business establishments are available around the locality. While taking into consideration all the facilities available in the locality, this Tribunal is of the considered opinion that the CIT(Appeals) has rightly found that the fair market value estimated by the assessee as on 01.04.1981 is reasonable and acceptable one. Coming to the value of the building, if the property was demolished as on 01.04.1981, it would have fetched ₹ 15 lakhs in respect of debris and other material used in construction. The assessee has claimed only 46% of ₹ 15 lakhs estimated. Therefore, this Tribunal is of the considered opinion that the CIT(Appeals) has rightly found that the claim of the assessee is reasonable. - Appeal of assessee allowed.
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