TMI Blog2010 (10) TMI 1085X X X X Extracts X X X X X X X X Extracts X X X X ..... the basis of the guideline value of the State Registration Department adopted the FMV as on 1.4.1981 at ₹ 8 per SY. According to the learned representative for the assessee guideline value of the Registration Department is only a guidance for the Sub-Registrar to find out the market rate for the purpose of collecting stamp duty. According to the learned representative for the assessee the guideline value of the Registration Department will not reflect the FMV. Moreover, in the State of Andhra Pradesh the FMV was fixed in the year 1976 and there was no revision of the guideline value till 1995. Only in the year 1995 the State Government revised the guideline value of the land for the purpose of registering the documents. Therefore, adopting the guideline value fixed in the year 1976 as the FMV as on 1.4.1981 is not justified. The learned representative for the assessee further submitted that the Registration Department fixed the guideline value at ₹ 3700 per SY in the year 2006. The CIT(A) has committed an error in adopting the guideline value of Registration Department. According to the learned representative for the assessee as on 1.4.1981 no guideline value was ava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in sub-clause (i) is not ascertainable, such price as may be determined in accordance with the rules made under this Act. 5. In view of the above definition, we have to find out what would the capital asset would fetch when the transaction took place between a willing seller and a willing purchaser in a hypothetical situation. In other words, the FMV is nothing but a price agreed between the willing purchaser and the willing seller. Admittedly the property was purchased by the previous owner on 21.3.1978. It is also not in dispute that the guideline value of the State Registration Department was fixed in the year 1976. This Tribunal had an occasion to consider an identical issue in the case of G. Vijay Ors. in I.T.A. No. 277/Hyd/2003 dated 29.4.2005. A copy of the order is placed at page 64 of the Paper Book. This Tribunal after considering the judgement of the jurisdictional High Court and the fact that the guideline value was fixed in the year 1976 found that the guideline value was fixed without any scientific data. Therefore, it cannot be treated as comparable value of the market value as on 1.4.1981. In fact, the Tribunal has observed as follows at para 9 of its order: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basic value register, it appears the land in question is situated on the National Highway and it is purely a residential location. It is also mentioned that the village is important since it is situated on the National Highway and due to industrialisation. This certificate does not show when it was actually prepared. The CIT(A) misconstrued the certificate as if it reflects the guideline value as on 1.4.1981. As observed by the co-ordinate Bench of this Tribunal in the case of G. Vijay (supra) the guideline value/basic value was fixed in the year 1976 and it was not revised till 1995. Moreover, the so called basic value/ guideline value was not prepared scientifically. Therefore, as observed by the co-ordinate Bench of this Tribunal in the case of G. Vijay Ors. (supra), the lower authorities are not justified in placing reliance on the guideline value fixed by the Government in the year 1976. The decision of this Tribunal in Vijay Ors. was followed by another co-ordinate bench of this Tribunal in ACIT vs. Shri Narasing Rao HUF in ITA No. 1240/Hyd/2007 dated 26.9.2008. The CIT(A) has committed an error in observing that the market value in question as on 1.4.1981 is ₹ 8 pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e location of the property as follows: LOCATION The property situated at Survey No. 76A, 77B 77A Hydernagar Village, Balanagar Revenue Mandal, Kukatpally Municipality, Ranga Reddy is with the following boundaries: NORTH : Nagarjuna Homes SOUTH : Property belonging to M/s. Bhavya Construction P. Ltd. EAST : Road WEST : Nizampet Road The property is a triangular piece of land. There are roads on two sides of the property. It is located within 1/2 km of the National Highway going towards Mumbai. It is surrounded by well developed infrastructure. The property has got tremendous commercial potential and is also in the vicinity of several educational institutions and banks. 10. This description of location was not disputed by the Revenue. Hyderabad is one of the fastest growing city in India and Kukatpally is situated near Hitech City where several multi-national software companies are located. By taking into consideration the location of the property and it is bounded by roads on two sides, the infrastructure facilities, educational institutions, access to National Highway which goes to Mumbai and the future potential for development, clearly shows that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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