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2015 (2) TMI 57 - AT - Income TaxCalculation of indexed cost of property - CIT(A) enhanced the rate of land to ₹ 17/- wherein, the AO adopted fair value of ₹ 11/- per sq. mtr for undeveloped big area for the year 1981 - whether land transferred by the assessee as agricultural land and not coming within the provisions of sec 2(24)(iii)(a) or 2(14)(iii)(b) of the income Tax Act, 1961 and as such not liable for Capital Gains Tax? - Held that:- In cross objection the assessee has taken the additional ground that the assessee has sold the agricultural land property, thus assessee has taken a legal issue in the cross objection for the first time before us. Therefore, as per decision of the Hon'ble Madhya Pradesh High Court in the case of CIT Vs. Tollaram Hassomal reported in ( 2006 (3) TMI 136 - MADHYA PRADESH High Court) the matter is remitted to the file of the AO for verification of the same. - Decided in favour of assessee for statistical purposes. AO directed to work the fair market value as on 1-4-1981 at ₹ 25/- per.sq.mtr. - Held that:- he Fair Market Value in relation to a capital asset means the price that capital asset would ordinarily fetch on sale in the open market on the relevant date. It is also a fact that there is no rule prescribed for the determination of the Fair Market Value. In this regard, under these facts and circumstances of the case, in our opinion, it will be fair and reasonable to adopt the Fair Market Value as has been worked out by the Inspector of the Department. Trinal corectly directed AO to o work out the Fair Market Value as on 1.4.1981 at ₹ 25/- per sq. mtr. - Decided against revenue.
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