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2018 (7) TMI 1755 - AT - Income TaxCapital gain computation - whether CIT(A) erred in not adopting the fair market value of the property at ₹ 10,69,065/- as on 01.04.1981? - whether the cost of acquisition of the property under question was allowable to the assessee and if yes, to what extent, it was allowable? - indexed cost of acquisition of the property at Rs. Nil - Held that:- The property under question has been sold and undisputedly assessed to revenue. As a logical consequence, the property must have been acquired by the assessee by some mode of acquisition. The cost of acquisition, in terms of computational provisions as contained in Section 48, was clearly allowable to the assessee. Hence, we hold that notwithstanding the fact that cost was not claimed in the return of income, the same was allowable to the assessee. Proceeding further, we find that the FAA has accepted DVO’s valuation of the flat on the date of sale. Nothing has been brought on record to suggest that the same has been contested by the revenue any further. Therefore, there was no reason for not adopting the valuation as on 01/04/1981. The flat, prima facie, was acquired by the assessee before 01/04/1981 and the law provides that in such a case the cost of acquisition would mean cost of acquisition or fair market value as on 01/04/1981, at the option of the assessee. AR, in support of cost of acquisition, has placed on record the copies of purchase documents which apparently have not been considered by Ld. AO. Hence, Ld. AO is directed to appreciate the same and re-compute the income of the assessee in terms of our directions bearing in mind that the assessee’s share in the property was to the extent of 17.14%. Assessee’s appeal stand allowed in terms of our order.
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