Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 1909 - AT - Income TaxComputation of capital gain - determining Fair Market Value (FMV) of land as on 1st April, 1981 - AO wanted that FVM should be taken as valued by the DVO - As argued that the FMV returned by the assessee was on the basis of the Regd. Valuers' certificate and therefore it was fair and reasonable, that the land should be treated as a developed industrial land and not as an undeveloped industrial land, that the plot of land fell in two different zones that the average of the rate for each zone should be adopted - HELD THAT:- We are aware that IVDRB and Ready Recknor 2000 cannot be applied as it is for valuing FMV of a property as on 01.04.1981, but after considering relevant facts same could be used as starting point. We also agree with the FAA that there could not be very high variation in the value of plot of land for the period 1959 to 1981 and 1981 to 2001. In absence of any other more reliable method his reliance on annual rate of appreciation method. It is known fact that price of land do not appreciate by uniform percentage every year, but for a period of more than forty years, some method has to adopted and method adopted by him is one of the reasonable method. It is also a fact that after the winds economic liberalisation swept the country in year 1991 price of land in Mumbai appreciated considerably than the earlier period-especially when internal emergency was declared in the country i.e. 1975-77. We find that FAA has also used the reference books as one of the sources for arriving at the FMV. In our opinion method adopted by him is a better 'guesswork' than the guesswork done by the valuer. His estimation is also very near to the valuation made by the DVO. We have considered the case of S.Krishnan [1997 (4) TMI 22 - BOMBAY HIGH COURT] cited by assessee. We find that decision delivered by the Hon'ble jurisdictional High Court dealt with acquisition of property. Therefore same is not of any help for deciding the issue before us especially in light of the principle mentioned at paragraph 4 of our order. Considering all we are of the opinion that FMV adopted by the FAA is a more reasonable and better proposition as compared to the FMV quoted by the valuer. Therefore, confirming his order, we decide the effective ground of appeal against the assessee-company.
|