TMI Blog1978 (1) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... olony. 67 plots measuring 12,877 sq. yds. were sold during 1970-71 relevant for the asst. yr. 1970-71 for a sum of Rs. 3,17,000 and plots measuring 1,732 sq. yds, were sold for Rs. 39,000 in the following year. A sum of Rs. 33,460 was offered for assessment as capital gain for the asst.yr.1971-72 as per the following details: 1. CAPITAL GAIN ; Area sold : . As per detailed list prepared with reference to Sale deeds... 12877 sq. yds. (+) Area covered under Roads and Parks (30 per cent)..... 3863 " " Total area disposed of — 16740 " " (A) Sale price : . As per Sale deeds detailed list attached. Rs. 3,17,000 (B) Cost price : . (I) Cost of the land with reference to average rate worked out on the basis of sale transactions took place in or about Jan. 1954(Copies of Sale deeds enclosed) Average rate comes to 12.50 per sq. yds.16740 X 12.50. 2,09,250. (ii) Cost of Improvement : . . Earth Levelling charges Rs. 32,850 . Brokerage Rs. 6,462 . Conveyance Rs. 62 . Advertisement Rs. 2,740 . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom Rs. 8 to Rs. 27 per sq. yards. On the basis of the material available on record, the ITO estimated the fair market value of the assessee land at Rs. 12 per sq. yards with reference to the date 1st Jan., 1954. 5. It is on these facts the Commissioner found that the ITO erred in relying on the sale rate of 17 sale instances, which pertained to Uttam Puri and G.T. Road. He was of the opinion that the land, covered by the 17 sale instances, was situated within the Miller Ganj area of Ludhiana City and within the Municipal limits. He observed that these plots had been sold in the area, which was coming up as residential colony provided with roads etc. The burden of the findings of the Commissioner is that whereas land in dispute was merely agricultural land on 1st Jan., 1954, plots having been sold under 17 sale deeds furnished by the assessee to the ITO, situated in developed colony and therefore, they did not constitute to be the comparable cases. He, therefore, took the view that the 'like' was not compared with 'alike' and, therefore, the order of the ITO was erroneous in so far as it was prejudicial to the interest of the Revenue. It is also observed by him that village Tara ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue. He urges that there is no error in the order of the ITO and that he rightly determined the valuation of the land of the assessee as on 1st Jan., 1954 @ Rs. 12 per sq. yard. On the other hand, the Revenue representative tried his best to support the order of the CIT. Let us first highlight the so called mistakes pointed out by the Commissioner in his order. The first error which the Commissioner points out is that the ITO compared the disputed and with the un-comparable material. He points out that the ITO wrongly relied upon the 17 sale instances, furnished by the assessee. Admittedly, the assessee furnished the copied of 17 sale deeds to the ITO. These sale deeds pertain to the sales of plots of land, which is situated in Miller Ganj area. The Commissioner writes in his order that the Miller Ganj area of Ludhiana City is within the Municipal Limits. Plots sold in Miller Ganj coming up as residential colonies were provided with roads etc. As compared to this the land of the assessee was agricultural land on 1st Jan., 1954. The burden of Commissioner's finding is that the land developed for, colonisation cannot be compared with the agricultural land. The question for c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ricultural land with the land developed for colonisation, the ITO took all possible steps. He asked the assessee to produce a certificate from the village Patwari, who keeps the record of sales of agricultural land. It so happened that the certificate of Patwari also gave the average of sales made during the year 1953-54 of Rs. 12.41 and Rs. 12.82 per. sq. yard. These two rates purported the sales of two different types of land. Making the estimate on the basis of the material available on record, the ITO observed as follows:— " In view of the above discussion, the evidence placed on the file and considering the sale price also, I shall estimate the fair market value of the land @ Rs. 12 per sq. yard." 8. We, therefore, do not agree with the Commissioner's finding that the ITO merely relied upon the 17 sales deeds, which purported to the land having developed for colonisation and he found them comparable cases. The ITO did not make up his mind on the basis of 17 sale deeds. He, rather found that they did not constitute to be comparable cases and he then proceeded to collect further material to ascertain the value of the agricultural land as on 1st Jan., 1954. We therefore, do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... industry of the City, it is not comparable with the land situated in village Taraf Jodhewal. This land is very valuable". 10. Second certificate dt. 12th May, 1976 obtained by the assessee from the Tehsildar runs as follows : " Budha Nala lies between the land of the applicant and Abadi Atampuri. Abadi Atampuri starts from the land of the applicant and extends to Miller Ganj. It is also certified that the Ghanta Ghar which is located at the G.T. Road and Miller Ganj are within one mile, approximately, of the land of the applicant. It is also certified that Abadi Sundar Nagar is not an approved Colony. It is developing area and the applicant is using it for fairly good agricultural purposes. In the land sold by the applicant, its purchasers, S/Shri Vijay Kumare, Subh Ram etc., have set up a Dairy Farm and Poultry Farm. They are using the said land also for agriculture. The land owned by S/Shri Rattan Singh, Amar Singh, Labh Singh, Hukam Singh, Ram Singh, Harnam Singh, Kartar Singh, Sarup Singh, Smt. Achhro, Gurbachan Singh, whose names are mentioned in the application, adjoins the land of the applicant", 11. No doubt, the Revenue authorities can give an authentic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the value of the assessee's land, which was still far away from the industrial area or residential area of Ludhiana, at least in 1954." We do not know what is the basis of those observation. No material has been referred to by the Commissioner in his order which may give the clue about the date of establishment of the cinema and the industrial area. Without any material he observed that these were not there in the year 1954. What we mean to say is that the infirmity which the Commissioner pointed out in the certificate of the Tehsildar, continued to exist in the order of the Commissioner himself. On the one hand he wants to reject the version of the Tehsildar on the ground that he has not stated the date of establishment of industries and the cinema hall and, on the other hand, he himself does not state the date of establishment of the industries and the cinema. He rather, wrongly quoted the certificate of the Tehsildar in para 6 of his order that the Tehsildar stated that the cinema hall, industries and other residential houses had come up after 1949. In our view the certificate of Tehsildar is not of general nature and it does not suffer from vagueness. From the certific ..... X X X X Extracts X X X X X X X X Extracts X X X X
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