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2019 (5) TMI 1443 - AT - Income TaxReopening of assessment u/s 147 - as alleged no notice has been served on the assessee - service of notice made in the hands of the Hindu undivided family of the assessee - sale of land by Hindu undivided family - HELD THAT:- The notices were sent at the address which is mentioned in the sale deed. Assessee did not file any return of income nor mentioned the PAN in the sale deed. The return filed by the assessee are also for Ay 2011-12 and not Ay 2008-09. AO did not have any mechanism to find out who is the person who has sold the land. The only source of information is the copy of the sale deed and address mentioned there in , notices / communication were sent. It is not the claim of the assessee that in sale deed wrong address is mentioned. Therefore, the argument of the assessee that no notice has been served on the assessee is rejected. Further with respect to the claim of the assessee that the land belongs to the Hindu undivided family and not in the status of individual is also dealt with by the learned CIT-A wherein he held that in the documents submitted by the assessee for the sale of land, it is nowhere mentioned that the assessee has sold the above land in the name of Hindu undivided family. Further in all the documents the names of all the appellant’s including Sri Dalel Singh is mentioned in their individual capacity only. Further the enquiry report also names the appellant’s in their individual capacity only. We reject the claim of the assessee that capital gain is chargeable to tax even if it is at all in the hands of the Hindu undivided family. As we already rejected the argument of the assessee that land belongs to the Hindu undivided family and not to the assessee in his individual capacity, all the arguments of the assessee with respect to the service of notice not made in the hands of the Hindu undivided family of the assessee is also rejected. Capital gain on sale of land - adoption of the estimated market value as on 1/4/1981 - HELD THAT:- According to the provisions of section 2 (22B) the fair market value in relation to a capital asset means the price that the capital asset would ordinarily fetch on sale in the open market on the relevant date i.e 01/04/1981. AO has not given any evidence that how the fair market value has been determined by him, we reject the fair market value adopted by the AO of INR 1,650,000 per acre as on 1/4/81. It is also true that assessee has also not produced before the lower authorities any evidence with respect to FMV of the land as on 1/4/1981. We set aside this issue back to the file of the learned assessing officer to determine the fair market value of the impugned property as on 1/4/81 by giving an opportunity to the assessee to first show the cost of acquisition of the asset and fair market value of the asset. Then at the option of the assessee any one of them can be taken as cost of acquisition of the asset for indexation. If the AO is not satisfied with the fair market value of the asset shown by the assessee as on 1/4/1981, then the learned assessing officer may decide the whole issue either by referring the matter to the district valuation officer for determining the fair market value or accepting the fair market value shown by the assessee and then decide the computation of the capital gain on sale of the above land in accordance with the provisions of the law. Accordingly ground number 4 of the appeal of the assessee is set aside to the file of the learned assessing officer with above direction.
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