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2020 (4) TMI 618 - AT - Income TaxCapital gain computation - reference to DVO - methods of valuation of land addition by allowing lesser deduction on account of cost / fair market value of land in rejecting fair market value as on 01.04.1981 claimed by the assessee as per Registered Valuer - HELD THAT:- Assessee had provided the reasons for determining ₹ 225/- per sq. ft. as the fair market value of the property by producing the relevant material, including valuation report of a registered valuer, which all have been ignored while arriving at the price of ₹ 84/- per sq. ft. AO assessed the value of the property as on 1.4.1981 on the basis of sale deeds of some nearby properties registered for such price in the year 1981 and thus, arrived at that figure. Same cannot be the proper mode of arriving at the 'fair market value' of the property in question as on 1.4.1981, for determining 'Capital gains' under the Act. AO is directed to apply rate of ₹ 380 per sq. meter for calculation if long-term capital gain in the hands of the assessee. Unexplained investment in property - HELD THAT:- Even if the source is not proved, then no addition of this amount can be made for the assessment year under consideration. Further, the assessee has explained that payment were made by cheque out of sale consideration received against agreement to sale. The payment received from K B Patel has been duly reflected in confirmation account appearing at Paper Book Page No. 7. This facts shows that funds were received as part of advance from Shri K B Patel for sale of said property. These funds were utilized for purchase of ne property. Later on said party has changed his mind and agreement to sale was cancelled. Since, the assessee has purchased another land out of part sale consideration received on sale of impugned land, he returned amount to K B Patel only when he sold impugned land to another person and received payments for the same. AO has wrongly made addition hence, same is therefore, deleted. Claim of deduction u/s 54B - HELD THAT:- Investment is not made out of sale proceeds of impugned land under consideration. Hence, same is rightly denied by the AO. Accordingly, Ground of appeal is dismissed.
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