Tribunal supports assessee's cost indexation and fair market value choice, dismissing Revenue's appeal.

The Tribunal upheld the Commissioner's decision in favor of the assessee on both issues. It supported the assessee's choice of base year for cost indexation and the revised fair market value based on a valid certificate. The Tribunal dismissed the Revenue's appeal, citing a Special Bench decision and emphasizing the importance of considering evidence provided by the assessee.

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Issues involved:
The appeal raised two grievances regarding a transaction where the assessee reported long-term capital gains. The first issue was the base year for cost indexation, and the second was the fair market value adopted as on April 1, 1981.

Base year for cost indexation:
The assessee acquired the property through inheritance but took the base year for cost indexation as 1981-82, while becoming the owner in 1992-93. The Assessing Officer applied the cost index figure for 1992-93, differing from the assessee's index of 100 for 1981-82. The Commissioner of Income-tax (Appeals) reversed this decision in favor of the assessee.

Fair market value adopted:
The assessee initially claimed a fair market value of Rs. 45,000 per ground, later revised to Rs. 2.25 lakhs per ground. The Assessing Officer rejected the revision, but the Commissioner directed adoption of the revised value based on a certificate from the District Registrar. The Revenue challenged this decision, arguing that without a revised return, the revision could not be made during assessment proceedings.

Judgment:
The Tribunal upheld the Commissioner's decision on both issues. Regarding cost indexation, the Tribunal cited a Special Bench decision supporting the assessee's position. On the fair market value issue, the Tribunal noted that the certificate provided by the assessee was valid and should have been considered by the Assessing Officer. The Tribunal found no reason to interfere with the Commissioner's order, ultimately dismissing the Revenue's appeal.

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