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2017 (2) TMI 953 - AT - Income TaxLong term capital gain - FMV adoption - Held that:- The AO has adopted ₹ 13.81 per sq.yd. whereas the valuation done by the assessee at ₹ 3,875/-, which are at extremes. The CIT(A) has accepted the contention of the assessee because the assessee had adopted the valuation done by a registered valuer on sales as well as FMV as on 01/04/1981. In the absence of any comparative sale during the period, the value adopted by the assessee seems to be higher side compared to the value adopted by the AO. This appeal is second round of appeal and there is no possibility of remitting back to the AO for recalculation as there will not be any benefit to either side. In our considered view, we need to find a via media so that it could be beneficial to either side. The Registered Valuer has discounted the value of sale price i.e. ₹ 45,000/- in the year 2006 to arrive at the value as at 01/04/1981 at ₹ 3,875/-. We can adopt the same discounted method to arrive the SRO value of ₹ 33,000/- in 2006 to arrive the SRO value as at 01/04/1981. It may give some relief to the assessee as well as to the department. The valuation is done as under; the resultant value comes to ₹ 2841/-. Thus In view of the above discussion, we direct the AO to adopt the FMV at ₹ 2,841/- per sq.yd. and calculate the long term capital gains accordingly. - Decided partly in favour of revenue
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