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2016 (9) TMI 1074 - AT - Income TaxAddition debiting the cost of appreciation as on 1.4.1981 - capital gain computation - Held that:- From the details of the sale instance of plots in the same area during the same period i.e. March, 1978 to 20.04.1981, it is noticed that the Market Value has varied between ₹ 371 per sq. yard to ₹ 1811 per sq.yard. Wide difference can be attributed to a number of factors such as location, extent of land and the taste of bidders. The area of plots considered for comparison is very less compared to the area of the plot contributed as capital by the assessee. As rightly pointed out by the learned counsel for the assessee the area is almost four times and therefore, the data relied upon by the AO cannot be relied upon in toto, more particularly, since the sale instances at Sl. No.1 to 6 are of the financial year 1978-79, the average of which is less than ₹ 1000/- per sq. yard while the average of the sale instances in 1981 is around ₹ 1780 per sq. yard. Since, the FMV of the land as on 1.4.1981 is to be adopted and the value adopted by the assessee @ ₹ 1000 per sq. yard is much less than this average, as convinced that the value adopted by the assessee is fair, reasonable and based on the relevant data. In view of the same, thus direct the AO to adopt the same for arriving at the cost of acquisition necessary for arriving at the capital gain. In view of the same, the assessment order is set aside. - Decided in favour of assessee.
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