Tribunal affirms sale consideration rate, directs Fair Market Value adjustment. Capital gains computation to consider actual Transferable Development Rights area.

The Tribunal upheld the CIT(A)'s determination of the sale consideration rate at Rs. 120.98 per sq.ft. and directed the AO to adopt Rs. 20 per sq.ft. as the Fair Market Value (FMV) as on 01-04-1981. The additional ground regarding the year of taxability was dismissed, and the AO was instructed to verify the actual area of Transferable Development Rights (TDR) sold for accurate computation of capital gains in the respective assessment years.

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Issues Involved:
1. Determination of sale consideration rate per sq.ft.
2. Adoption of Fair Market Value (FMV) as on 01-04-1981.
3. Year of taxability of capital gains.
4. Correct area of land considered for computation of capital gains.
5. Opportunity for cross-examination and principles of natural justice.

Issue-wise Detailed Analysis:

1. Determination of Sale Consideration Rate per sq.ft.:
The assessee declared the sale consideration of Transferable Development Rights (TDR) at Rs. 80 per sq.ft. The Assessing Officer (AO) determined it at Rs. 120 per sq.ft. based on seized documents. The CIT(A) computed the rate at Rs. 120.98 per sq.ft. based on detailed analysis of the seized documents. The Tribunal upheld the CIT(A)'s determination, stating that the factual analysis by the CIT(A) was not controverted by the assessee, and the absence of unaccounted assets did not justify adopting the rate at Rs. 80 per sq.ft.

2. Adoption of Fair Market Value (FMV) as on 01-04-1981:
The AO rejected the assessee's valuation of Rs. 20 per sq.ft. based on the valuer's report, citing inconsistencies and lower comparable rates from public authority acquisitions. The AO adopted Rs. 8 per sq.ft., while the CIT(A) increased it to Rs. 9 per sq.ft. The Tribunal, considering the ready reckoner rate of 1989 and the principle laid down in similar cases, directed the AO to adopt Rs. 20 per sq.ft. as the cost of acquisition as on 01-04-1981.

3. Year of Taxability of Capital Gains:
The assessee argued that the capital gain should be taxed in A.Y. 2000-01 as the land was acquired by PMC and TDR was issued in March 2000. The Tribunal dismissed this argument, stating that the tax was levied on the sale of TDR during the impugned assessment year and not on the acquisition of land by PMC. Thus, the additional ground on this issue was dismissed.

4. Correct Area of Land Considered for Computation of Capital Gains:
The assessee contended that there was an error in the area of land considered for computation. The Tribunal directed the AO to verify the actual area of TDR sold and compute the capital gain accordingly, ensuring the correct income is taxed in the impugned assessment year.

5. Opportunity for Cross-examination and Principles of Natural Justice:
The assessee argued that the AO relied on documents and statements without giving due opportunity for cross-examination. The Tribunal did not explicitly address this issue in detail but focused on the correctness of the sale consideration and FMV adopted by the authorities.

Separate Judgments:
The Tribunal's order applied to multiple appeals filed by different family members of the assessee, with identical grounds and issues. The decisions for each appeal were consistent with the primary case discussed, directing similar actions for verification and computation by the AO.

Conclusion:
The Tribunal upheld the CIT(A)'s determination of the sale consideration rate at Rs. 120.98 per sq.ft. and directed the AO to adopt Rs. 20 per sq.ft. as the FMV as on 01-04-1981. The additional ground regarding the year of taxability was dismissed. The AO was directed to verify the actual area of TDR sold and compute the capital gain accordingly, ensuring the correct income is taxed in the respective assessment years.

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