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2019 (11) TMI 871 - AT - Income TaxCapital gain computation - determining the cost of acquisition on sale of property for computing the capital gains - HELD THAT:- The fair market value as on 01.04.1981 was adopted by the assessee on the basis of Chartered Engineers certificate issued by S.V.Ramana, who has valued the building after making personal visit. The question whether the fair market value and the SRO value is one and the same or not was considered by this Tribunal in the case law cited supra and held that the fair market value is not a guideline value In the instant case, both the lower authorities have simply brushed aside the Chartered Engineer’s valuation report submitted by the assessee without assigning any reasons. Further the AO has adopted the SRO value as fair market value which is incorrect approach. The guide line value is the rate at which the properties are registered in and around the area, but not related to the exact premises of the assessee. Therefore for the purpose of determining the capital gains, the guide line value cannot be applied blindly when there is registered valuer’s report made available to the AO. Since the facts of this case are identical to the facts of the case law relied upon by the assessee, we direct the AO to adopt the fair market value of the cost of acquisition as certified by the registered valuer’s certificate, instead of substituting the same with SRO value. Accordingly, we set aside the order of the Ld.CIT(A) and delete the addition made by the AO. Appeal of the assessee is allowed.
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