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2012 (5) TMI 149 - HC - Wealth-taxValuation under Wealth Tax - Fair Market Value of the selfsame jewellery as on 1st April 1974 should be arrived by reverse indexation from the date of sale held in December 1991 based on the sale price and not from the Fair Market Value as on 31 st March 1989 on the basis of which the Revenue had imposed Wealth Tax upon the assessee – Held that:- Revenue having accepted the declaration of the valuation of the selfsame jewellery given by the assessee as on 31 st March, 1989 as correct valuation for the purpose of Wealth Tax Act, there is no reason why the same valuation should not be treated to be a reliable base for the purpose of computing the capital gain under the Act by the process of reverse indexation - Contention to adopt the reverse indexation from the date of actual sale simply because in that process the Revenue will be benefited cannot be accepted - for the purpose of taxation, it is settled law that when two equally efficacious and acceptable data for the purpose of valuations are available, the one which is beneficial to the assessee should be preferred. The full value of consideration received as a result of transfer of jewellery belonging to a royal family for the purpose of ascertaining the market value as on April 1, 1974 in order to deduct the same from actual sale price would be unsafe to base the actual sale price by the process of reverse indexation and thus the valuation accepted by Revenue as market value for the purpose of Wealth Tax Act is the safest base - AO directed to recalculate the capital gain by adopting reverse indexation based on valuation as on 31 st March, 1989 - in favour of assessee.
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