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2017 (4) TMI 48 - AT - Income TaxComputation of capital gains - Deduction u/s 54F - sale of land appurtenant to the residential house owned by the appellant - Held that:- In the instant case, it is not the case of AO and CIT (Appeals) that the land was not appurtenant to the residential house. The case of the CIT (Appeals) is that the assessee has sold only the land appurtenant to the house and not residential house which, according to the Karnataka High Court in Shri C.N. Anantharaman vs. ACIT [2014 (10) TMI 932 - KARNATAKA HIGH COURT] is not a requirement under the law and exemption u/s 54 of the Act is also available to the land which is appurtenant to the house. The front page of the sale deed itself shows that the land was part of residential house No. 64, Agrasen Vihar, Muzaffarnagar. Therefore, the exemption as claimed and allowed by the Assessing Officer should be upheld and the enhancement as made by the CIT (Appeals) is not sustainable in the eyes of law, hence, the same is deleted. - Decided in favour of assessee Application of rate for the purpose of working out the capital gain - FMV - Held that:- The market value should have been taken as was in the hands of previous owner Smt. Asha Swarup from whom the appellant had received the property because she is the previous owner as far as the assessee is concerned and because Smt. Asha Swarup had acquired the property as on 31 st March 1985, hence the market value of the property should have been taken into account as on 31st March 1985 as worked out by the registered valuer at ₹ 730/ - per sq yard. Without prejudice to above, even if it is presumed that it is the cost in the hands of Smt. Jyotsna Kumari Swarup has to be taken into account because Smt. Asha Swarup had acquired the property by way of a will from Smt. Jyotsna Kumari Swarup. Even then the market value of the property as on 1 st April 1981 was more than as adopted by the Assessing Officer. The Assessing Officer has adopted the market value of the property as that was notified by the Stamp Authorities for the purpose of levy of stamp duty by circle rates. The Stamp Authorities, while fixing the circle rates, did not take into account various advantages and disadvantages and the location of the property, but they fixed the circle rate on a fixed rate for whole of the locality. Hon'ble Jurisdictional Allahabad High Court in the case of Dinesh Kumar Mittal vs. ITO [1991 (3) TMI 78 - ALLAHABAD High Court ] as been held that there is no rule of law to the effect that the value determined for the purpose of stamp duty is the market value of the property. The market value of the property may be more or may be less. Therefore, in such circumstances, when a registered valuer has worked out the market value of the property as on 1 st April 1981 at ₹ 600 / - per square yard after taking into account the location of the land, the same should be adopted by the Assessing Officer. - Decided in favour of assessee
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