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2018 (3) TMI 1076 - AT - Income TaxCapital Gains - Valuation - determination of cost of acquisition - AO did not accept the fair market value and indexed cost applied by the assessee and obtained the D.L.C. Rates for village Kanakpura, Jaipur as on 19/12/1991 at ₹ 39,000/- per bigha as against the rate adopted by the assessee at ₹ 1 lacs per bigha. Accordingly, the AO applied reverse indexation method of D.L.C. rate of ₹ 39,000/- per bigha and worked out the fair market value as on 01/04/1981 at ₹ 20,000/- in round figure. Held that: - The D.L.C. Rates are not representing the indexed cost over the years and therefore when the rates are revised by the Government on the basis of the prevailing fair market value of the land then there is no point in applying the reverse indexation - the AO is directed to compute the indexed cost by applying forward indexation from 1991 to till the date of sale on the fair market value of ₹ 70,000/- and then compute the capital gain - appeal allowed in part.
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