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2014 (5) TMI 957 - AT - Income TaxDeletion of addition on LTCG on sale of non-agricultural land - Whether while valuing the land as on 01-04-1981 for calculating the long term capital gain, should be treated as agricultural land or non-agricultural land or not – Held that:- As on 01-04-1981 the land was agricultural land which was converted subsequently into non-agricultural land and sold as non-agricultural land - The assessee has taken the valuation of the land at Rs. 960 per square meter on the basis of valuation determined by a government registered valuer by treating this land as non-agricultural land as on 01-04-1981 – Following Sri Pravinbhai J. Pandya Versus ITO Ward-2(3), Baroda [2014 (5) TMI 879 - ITAT AHMEDABAD] - as on 01-04-1981 land was agricultural land and to apply cost inflation index the same cannot be treated as nonagricultural land as on 01-04-1981 simply because the same was converted into non-agricultural land subsequently in the year 2005 when the same was sold as non-agricultural land – the land as agricultural land as on 01-04-1981 and AO has rightly taken the valuation of the land @ 2.32 per sq. ft on the basis of comparable instances obtained by him. As per the provisions of section 55A of the Act, the AO may refer the matter to DVO in case valuation of any property on the basis of registered valuer has been shown by the assessee less than the market value – the AO was justified in treating the land as agricultural land as on 01-04-1981 while valuing the same for calculating the long term capital gain – thus, the order of the CIT(A) is set aside – Decided in favour of Revenue.
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