Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (9) TMI 1402 - ITAT AHMEDABAD

2015 (9) TMI 1402 - ITAT AHMEDABAD - TMI - Fair market value - CIT(A) adopting the fair market value of the land as on 1.4.1981 @ of ₹ 76/- per sq. meter as against ₹ 105/- per sq. meter determined by the Valuer for assessing capital gain on transfer of inherited land - Held that:- As required on the part of the AO to make a reference to the valuation officer under section 55A of the Act in order to ascertain the fair market value of the asset because Valuation Officer is a person of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of three rates i.e. minimum rate given by Sub- Registrar, Daman at ₹ 33, maximum rate given by Sub-Registrar, Daman and the rate given by the govt. approved valuer at ₹ 108/-. The average rate will work out at ₹ 102/- per sq.meter (Rs.33 + ₹ 165 + ₹ 108 = ₹ 306/3 = ₹ 102/-). In the circumstances, we direct the AO to adopt the fair market value of the asset as on 1.4.1981 at ₹ 102/- only. - Decided partly in favour of assessee - ITA No.373/Ahd/2012, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d/2012 for AY 2008-09. The assessee has taken following effective ground in this appeal :- On the facts and circumstances of the case the ld. CIT(A) has erred in adopting the fair market value of the land as on 1.4.1981 @ of ₹ 76/- per sq. meter as against ₹ 105/- per sq. meter determined by the Valuer for assessing capital gain on transfer of inherited land. 3. Brief facts of the case as gathered from the orders of lower authorities and submissions made by the assessee are that the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

377; 3,89,841/-. This land was acquired by assessee s father in the year 1930 and, therefore, for calculation of long term capital gains cost of acquisition of the said property on 1.4.1981 was required. The assessee has shown the cost of acquisition of said property @ ₹ 165/- per sq. meter and accordingly calculated long term capital gain which figured out to be long term capital loss at ₹ 3,89,841/-. Whereas AO on the basis of information available with him adopted average rate of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s before the AO is reproduced hereunder :- 1. The assessee sold an agricultural land bearing S. No.65/3-D at village Ringanwada, Nani Daman, Daman for a total consideration of Rs,63,99,841/-. 2. The assessee claimed deduction of indexed cost of ₹ 67,78,627/- from the sale consideration and declaimed net capital loss of ₹ 3,89,841/-. 3. For determining the indexed cost the assessee adopted estimated fair market value of ₹ 165/- per sq. meter as on 1/4/1981 for arriving at the sa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

es 316 to 326 2. Name of Vendor : 1) M/s Simplex Tin Products, Daman 2) Chandulal Lalchand Kothari 3) Sureshchandra Nemchand Shah 3. Name of Purchaser -1) Kantilal Hirasao Jain 2) M/s Simplex Tin Products P. Ltd. 4. Survey No. Plot No.18 & 19 part of plot no.678, 3/3,3/2,3/1,677,10/1, 9,8/2 & 8/1. 5. Area : 2000 sq.mtrs. 6. Value -3,30,000/- (@ 165/- per sq.mtrs.) 4. The assessee also obtained a certificate dated 16/01/2008 from the Sub- Registrar, Daman certifying the sales value of agr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

we request your honour to adopt the said value and accept the income declared by our said client. 5. On the other hand, The AO called for information under section 133(6) of the Act from Sub-Registrar, Daman on 3.9.2010 to provide the fair market value/jantri rate prevailing on in the year 1981. In response to the same the Sub-Registrar, Daman vide letter dated 15.9.2010 replied that the sales statistics rates between ₹ 33/- to ₹ 53/- per sq.mtrs. for land in the year 1981. Therefore .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s. In the written submissions made by the assessee s AR it was stated that in arriving at the fair market value of land as on 1.4.1981 at Ringanwada the approved valuers have taken into consideration the said value of ₹ 165/- as well as instance of sales/transfers of Ringanwada. The assessee s submissions about the relevant extracts from the valuation report of the govt. approved valuer also forms part of the CIT(A) s order which was showing various rates of calculation of rate including r .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

or the FMV to be ₹ 165/- or at least ₹ 106/- per sq.mtrs. The findings of the AO was based on the information collected from Sub-Registrar, Daman vide letter dated 15.9.2010. In the said letter the Sub-Registrar stated that the sales statistics rates was between ₹ 33 to 55/- per sq.mtrs. for land in the year 1981. The AO averaged out and applied ₹ 43/- as FMV as on 1.4.1981. On the other hand the appellant s assertion for adopting FMV at ₹ 165/- or at least ₹ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

b-registrar in this sale deed was ₹ 99/- per sq.mtrs. In the submission made by the ld. AR above various alternative have been considered to impress for the rate sought by the appellant. I have carefully considered the facts and circumstances of the case. Both the AO and the appellant heavily relied on the certified rates from the Sub-Registrar. But the rate certified by the Sub-Registrar widely varies. As rightly observed by the AO, the certificates submitted by the ld. AR was not pertain .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

report from an independent valuer. The rate per sq.mtr indicated in the sales deed in the year 1988 was ₹ 99/- and the rate as per valuer s report was ₹ 106/- for the year 1981. The ld. AR also offered another alternative that the average of the value of ₹ 43 adopted by AO and that of ₹ 165 adopted by the appellant which comes to ₹ 104 (Rs.43 + 165/2) and is closer to the value of ₹ 108 determined by the approved valuer Parekh & Associates may be adopted. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

average rate at ₹ 43/- per sq.mtr. On the other hand the ld. AR offered many alternatives to augment his case. Determination of fair market value, in the present circumstances, suffers from subjectivity. However, in the interest of justice and considering the evidences on record, in my opinion a middle path has to be found for computing FMV of the land in question in 1981. The rate adopted by the AO at ₹ 43/- whereas the ld. AR s claim after aggregating all 3 possible option was  .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

8377; 23/- is justifiable. In this circumstances, I direct the AO to adopt the FMV for the year 1981 at ₹ 76/- per sq.mtr. Accordingly this ground is partly allowed. 7. Aggrieved, the assessee is in further appeal before the Tribunal. The ld. AR of the assessee is again pressing his ground of appeal for applying rate of ₹ 105/- per sq.mtr. as determined by the Government Approved Valuer for computing the capital gain on transfer of inherited land for the very reason that the rates gi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

1 As regards valuation of flat as on 1.4.1981 the admitted facts of the case are that the value declared by the assessee is supported by valuation report of a registered valuer. The AO has taken different valuation without obtaining valuation report from the DVO. The AO has taken the value as on 1.4.1981 on other basis. We are of the view that assessee s valuation as on 1.4.1981 is supported by valuation by a technical person i.e. report of a registered valuer and contrary to that no such materi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

apital gain. 9. We have heard the rival contentions and gone through the facts and circumstances of the case as well as Paper Book and submissions made by the assessee and submissions of ld. DR. From the perusal of records, this is a fact that there have been different rates available as on 1.4.1981 in relation to arrive at the cost of acquisition of the piece of land sold by the assessee. These rates can be summed up - 1. Rate given by Sub-Registrar, Daman vide letter 15.9.2010 in reply to lett .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

registered valuer who is a person with technical expertise for the purpose of valuation has given the rate of ₹ 108/- per sq.meter for the purpose of valuation by considering more than one instances of sale/transfer of land at Ringanwada, Nani Daman. In other words the govt. approved valuer has tried to arrive at quite close to the fair market value of the said land due to his adoption of scientific and technical method. We further notice that AO has relied purely on the average rate given .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e of such valuation. In the present case no such reference was made by the AO to approach the valuation officer. We, therefore, find it appropriate to give cognizance to various rates as referred to above in such a way so as to cover the rates for the purpose of valuation given by Sub-Registrar, Daman to the AO, rates given by Sub-Registrar, Daman to the assessee as well as the rate given by the govt. approved valuer. We, therefore, decide to apply the average of three rates i.e. minimum rate gi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version