TMI Blog2018 (11) TMI 1831X X X X Extracts X X X X X X X X Extracts X X X X ..... ustice on technical ground but because, they are capable of removing injustice and is expected to do so. Once a piece of land has been valued in the case of other co-owners and accepted by the AO then for other co-owners that rate should not be differed with unless some other substantial circumstances are there, showing more potentiality of the land viz. the land is abutted to National high-ways or some other factors which fetch more value to the area. No such factor has been noticed by the AO or available in the present case. Therefore, we allow first fold of grievance raised by the assessee. We direct the AO to compute long term capital gain after adopting fair market value of the property as on 1.4.1981 at ₹ 80/- per sq.yard. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d.CIT(A) has erred in confirming the action of the AO in not referring the valuation of the property under section 50C(2)(a) of the Act for determining full value of consideration received by the assessee for computing long term capital gain. 3. As far as first fold of contention for reopening of the assessment is concerned, no arguments were put forth by the ld.counsel for the assessee, which in a way, is not pressed for adjudication. Hence, the same is rejected. Now we take second and third folds of grievances, which relate to computation of long-term capital gain on transfer of the property. 4. Brief facts of the case are that the assessee has filed return of income on 25.3.2008 declaring total income at ₹ 52,130/-. The ld.AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eport of registered valuer obtained by him, wherein he valued the property at the rate of ₹ 25/- per sq.meter as on 1.4.1981, hence there is no need to take into consideration valuation report of other registered valuer. With regard to second fold of contentions, he observed that section 50C is deeming provision and rate determined by the stamp valuation authority was required to be adopted for the purpose of computing capital gain. Appeal to the ld.CIT(A) did not bring any relief to the assessee. 5. With the assistance of the ld.representatives, we have gone through the record carefully. Section 48 of the Income Tax Act provides mode of computation of capital gain. This section contemplates that income chargeable under the head ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2 share) ₹ 20,86,200/- Less: Indexation cost of land considering share of the assessee (4957.50 sq.m x 80 Rs. Per sq.m.) ₹ 19,71,102/- Long term capital gain ₹ 1,15,098/- Total Income ₹ 1,15,098/- Rounding off to ₹ 1,15,100/- 6. This person was having land at survey no.214 in Block Nos.315 and 318. The assessee is also having land in survey no.214 in block no.320. Similarly, other assessees were also having land in this survey number, and on transfer of the land, capital gain was computed by adopting rate of acquisition at S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rket value of the property as on 1.4.1981 at ₹ 80/- per sq.yard. The ld.AO shall thereafter give benefit of indexation at this rate and calculate along with cost, which is to be reduced from the ultimate sale consideration deemed in the hands of the assessee under section 50C of the Income Tax Act. The ld. AO has further granted total deduction of ₹ 15,24,464/- being deduction under section 54D for new agricultural land of ₹ 4,67,720/- and ₹ 10,56,744/- under section 54F for purchase of residential house. These deductions are not being disturbed by us. They will be granted to the assessee after computation of long term capital gain as indicated above. 7. No other issue was pressed by the ld.counsel for the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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