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2013 (2) TMI 604 - AT - Income TaxFair market value for the purpose of computation of capital gain - assessee took it as at Rs. 5,588 per cent as on 01-04-1981 where as AO on the basis of the letter received from Sub Registrar has fixed at Rs.466 per cent - Held that:- For the purpose of estimating the fair market value as on 01-04-1981 consideration of the locality in which the land is situated, the accessability to infrastructure facilities, comparative sale instances in the locality, potentiality for future development, distance between the land and the bus stand, railways station, airport, etc has to be made. The guideline value fixed by the Sub Registrar is only a guideline value to ascertain the market value and may be one of the factors to be taken into consideration for estimating the fair market value, however, it cannot be the sole basis for fixing the fair market value as on 01-04-1981. As the taxpayers now claim that in the case of the neighbour the fair market value as on 01-04-1981 was fixed at Rs.2,300. Unfortunately, all these facts were not considered by the assessing authority therefore the assessing officer has to reconsider the issue in the light of all factors mentioned above and thereafter take a decision - in favour of assessee for statistical purposes. Exemption u/s 54, 54F and 54EC denied - as per AO the taxpayers have deposited the amount in the fixed deposit in State Bank of Travancore, Pettah Branch, Trivandrum - Held that:- Unable to accept the claim of the taxpayers as legislature has framed the scheme for the purpose of giving exemption from the capital gain tax by asking the taxpayer to deposit the amount in the capital gain bond scheme. Therefore, if the taxpayer wants to take benefit of the scheme the money has to be deposited in the capital gain bond. Deposit of money in the fixed deposit cannot be construed as deposit in the capital gain bond, therefore the taxpayers are not eligible for exemption at all - against assessee. Indexed cost of improvement declined - Held that:- As on the inspection of the land, the revenue authorities found that no improvement was undertaken by the taxpayers. No material is available on record to suggest that the taxpayer has undertaken any improvement in the land therefore no infirmity in the orders of the lower authority - against assessee.
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