TMI Blog2018 (3) TMI 1076X X X X Extracts X X X X X X X X Extracts X X X X ..... evised 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. - ITA No. 645/JP/2016 - - - Dated:- 29-1-2018 - SHRI VIJAY PAL RAO, JM AND SHRI VIKRAM SINGH YADAV, AM For The Assessee : Shri Mahendra Gargieya (Advocate) For The Revenue by : Shri Ajay Malik (Add l CIT) ORDER PER: VIJAY PAL RAO, JM This appeal of the assessee is directed against the order of Ld. CIT (A)-I, Jaipur dated 14/03/2016 pertaining to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . rate of ₹ 39,000/- per bigha and worked out the fair market value as on 01/04/1981 at ₹ 20,000/- in round figure. The AO accordingly computed the capital gain and made an addition of ₹ 17,40,000/-. The assessee challenged the action of the AO before the Ld. CIT(A), but could not succeed. 3. Before us, the Ld. AR of the assessee has submitted that the AO has applied D.L.C. Rate as on 19/12/1991 for the village Kanakpura, Jaipur which is undisputedly not a comparable land as the agricultural land in question is situated in district Dausa. Therefore, we find that the D.L.C. Rate applied by the AO as on 19/12/1991 cannot be adopted as a fair market value of the agricultural land in question situated in district Dausa. At ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is adopted at ₹ 70,000/- per bigha and the indexed cost has to be calculated from 1991 to till date of sale instead of backward indexation for determined. 4. It is pertinent to note 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. Hence, we direct the AO 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. 5. In the result, appeal filed by the assessee is partly allowed. Order pronounced in the open cour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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