https://www.taxtmi.com/caselaws?id=290564 ITAT Chennai noted that, for capital gains purposes, the fair market value of land as on 01.04.1981 may reasonably be determined by averaging the registered valuer's estimate and the Sub-Registrar's valuation, and sustained that method. It also held that a loan liability borrowed by a third party firm or company could not be deducted as part of the property's cost of acquisition where the assessee was neither the borrower nor the debtor, the property was only collateral security, and no direct nexus was shown between sale proceeds and discharge of that liability. The claimed deduction was therefore disallowed. en-us Wed, 26 Oct 2016 00:00:00 +0530 Tue, 06 Oct 2020 10:46:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=290564 ITAT Chennai noted that, for capital gains purposes, the fair market value of land as on 01.04.1981 may reasonably be determined by averaging the registered valuer's estimate and the Sub-Registrar's valuation, and sustained that method. It also held that a loan liability borrowed by a third party firm or company could not be deducted as part of the property's cost of acquisition where the assessee was neither the borrower nor the debtor, the property was only collateral security, and no direct nexus was shown between sale proceeds and discharge of that liability. The claimed deduction was therefore disallowed. Case-Laws Income Tax Wed, 26 Oct 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=290564