Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (3) TMI 484 - AT - Income TaxComputing capital gain on sale of 75.046 cents of land - determination of fair market value as on 01-04-1981 - Held that:- The land is admittedly situated few metres away from the bypass road which is part of NH 47. It is also an admitted fact that NH 47 and bypass road was formed even in the year 1981. The subject matter of land has proximity to the national highway. It has potential for future development because of its location. The land was sold for construction of a multi-storey building consisting of 80 apartments. By taking into consideration all these factors, this Tribunal is of the considered opinion that the land would definitely fetch nearly ₹ 45,000 per cent. Even though the approved valuer estimated the value of the land at 51,272 per cent, since the assessee claims the value of the land only at ₹ 45,000 per cent, this Tribunal is of the considered opinion that the lower authorities have not justified in restricting the same at ₹ 3,000 per cent. The land compared by the assessing officer is 2 kms away from the subject matter of land, therefore, the value of that 5 cents of land cannot be taken as a comparable case for estimating the fair market value of the subject matter of land. Therefore, the lower authorities may not be justified in taking the value of the land at ₹ 3,000 per cent. Accordingly, the orders of the lower authorities are set aside, and the assessing officer is directed to take ₹ 45,000 per cent as fair market value as on 01-04-1981. - Decided in favour of assessee. Valuation of the building - though the assessee claims the value of the old house at ₹ 12,54,327 the assessing officer restricted the same at ₹ 7 lakhs - Held that:- The assessee claims that the old house was nalukettu with teakwood and rose wood and it was well maintained by renovation from time to time. There is no reference about this house in the valuation report. There is no other material available on record to suggest that the house was built with teak wood and rose wood. In the absence of any material, this Tribunal is of the considered opinion that the assessing officer has rightly estimated the value at ₹ 7 lakhs. In respect of the other house, the assessee claims value at ₹ 16 lakhs. However, the assessing officer has taken the value at ₹ 15 lakhs. The approved valuer has not expressed any opinion about the value of this house. The remand report is also silent. No material is available on record to suggest the type of construction or otherwise to indicate the value of the land. In the absence of any material, this Tribunal is of the considered opinion that the assessing officer has rightly taken the value at ₹ 15 lakhs. - Decided against assessee.
|