Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (7) TMI 1442 - MADRAS HIGH COURTLTCG - fair market value as on 1.4.1981 - valuation of the property as sold by the assessee for the purpose of computation of capital gain - Tribunal held that the assessee for the purpose of valuation under the Wealth Tax Act has adopted a value and there is no going back on the said valuation - HELD THAT:- Attempt of the assessee before the CIT(A) was to take advantage of the notification issued by Government of Puducherry, much after the relevant date, which is 01.04.1981. Therefore, any subsequent notification issued by the Government of Puducherry could have been taken advantage by the assessee that too before the CIT(A) for the first time. Assessee himself has accepted before the Assessing Officer that the valuation of the property, as adopted by him, in the Wealth Tax Assessment may be taken into consideration. However, to the said extent the Assessing Officer did not grant relief. We find the reasons assigned by the Tribunal are perfectly legal and valid considering the factual position. However, valuation adopted by the assessee in the Wealth Tax Assessment was not adopted by the Assessing Officer and there has been a deduction even in that valuation. The reasonable approach would have been to adopt the valuation in the Wealth Tax Assessment, since the Tribunal holds that the assessee could not have been taken two different values i.e., one valuation is under the Wealth Tax Assessment and another is under Income Tax Act. Therefore to that extent, we are of the view that the assessee is entitled to relief. Appeal is partly allowed and the matter is remanded to the AO to compute the capital gain by taking the value of the land at ₹ 1,65,600/- and the value of the building at ₹ 80,000/- and the Assessing officer is directed to redo the assessment to the extent indicated. Consequently, substantial questions of law is left open.
|