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2016 (10) TMI 1317 - AT - Income TaxCapital gain computation - Fair Market Value (FMV) as on 01.04.1981 of the property as capital asset - FMV ₹ 4,500/- per acre as per CIT-A as against ₹ 6,000/- per acre claimed by the assessee - valuation report obtained from a Chartered Engineer relied by assessee - HELD THAT:- CIT(A) had considered the average of registered valuer and Sub-Registrar valuation for determining the FMV of the property as on 01.04.1981. This decision of Ld.CIT(A) is based on the order of the Tribunal, Chennai Bench in the case of M/s.Kutty Flush Doors [2014 (10) TMI 1027 - ITAT CHENNAI]. Being so, we do not find any infirmity in the order of Ld.CIT(A). The same is confirmed. Denial of loan liability from the cost of acquisition as deduction in the computation of long term capital gains - AO has denied the claim of deduction as impugned capital asset was settled by the grandmother of the assessee in his favour vide Settlement Deed wherein no narration of the pre-existing change/mortage in the capital asset and loan liability was related to a partnership firm M/s.S.Albert & Co., taken for the business purposes of the aforesaid firm - HELD THAT:- Property was given as a collateral security for the loan availed by other than the assessee, which is a M/s.S.Albert & Co., as pointed out by the AO in his assessment order and neither the assessee nor the assessee’s grandmother who settled the property in favour of the assessee, is borrower nor a party to the suit, the mortgage debt cannot be considered as a cost of acquisition of property so as to give deduction while computing the capital gains from the transfer of the property. If the consideration of sale of property apportioned towards the outstanding debt in bank, the assessee is having very well right to claim from the borrower of the bank whose debt was settled. No infirmity in the order of the Ld.CIT(A). The same is confirmed. - Decided against assessee.
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