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2016 (6) TMI 553 - AT - Income TaxRate of land adopted for the period prior to 1981 for computation of long term capital gain - correct value to arrive at cost of indexation - Held that:- CIT(A) on perusal of the report of survey map submitted before him observed that assessee’s land has locational advantage with regards to the roads, civic amenities like schools, hospitals, offices, markets etc. Transportation in the form of auto-rickshaws and buses is available. Further, the land was on the main road and has its own potential. The land was in the vicinity of developed industrial area and since it is situated on the main road, it would always fetch higher valuation. In these circumstances, determining the land value at ₹ 2.23 per Sq. mtr. was found to be on lower side as assessee’s land as having more potential because of the advantages attached to it as discussed above. Therefore, taking into consideration that the Department had already accepted the value of the land of lesser advantages at ₹ 18/- sq. mtr. in vicinity and also considering the facts and circumstances, CIT(A) rightly estimated the value of the land at ₹ 25/- per sq. mtr. as against the value adopted by the Assessing Officer at ₹ 2.23/- per Sq. mtr. Accordingly, the Assessing Officer was directed to adopt the value of the land at ₹ 25/- per sq. mtr. and compute the long term capital gain. Thus, this reasoned finding of CIT(A) need no interference from our side. We uphold the same.
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