TaxTMI 
TaxTMI 
2007 (12) TMI 239
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....ent appeals relates to the manner of computation of capital gain accruing as a result of sale of said land by the three co-owners in the year under consideration. We find it expedient to pass a consolidated order since the issue involved is common. 2. Since the facts and circumstances in all the appeals are common, we may refer to the facts in relation to the case of Smt. Baljinder Kaur, ITA No. 545/Chd./2007. Briefly stated the facts are that the assessee sold her share of the impugned land at a total consideration of Rs. 71,67,000 during the year under consideration. The land owned by the assessee was 2.16 acres. The assessee declared a loss of Rs. 4,69,200 on account of the said sale. In computing the said capital loss the assessee adop....
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....in appeal before the CIT(A) and thereafter to the Tribunal. The Tribunal vide its order in IT Appeal Nos. 408, 410/Chd./2000 dated 8-10-2004 restored the matter to the file of the Assessing Officer with directions. The impugned order has been passed by the Assessing Officer in compliance to the order of the Tribunal. In this order the Assessing Officer has worked out the capital gain at the same amount by adopting fair market value of the land as on 1-4-1981 at Rs. 90,000 per acre. The CIT(A) has since held that the Assessing Officer was not justified in rejecting the fair market value of land @ Rs. 11.50 lakhs per acre considered by the assessee for computing the capital gain. Against the said decision the Revenue is in appeal. The assesse....
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....was not executed; the rate adopted in the said agreement was Rs. 11.50 lacs per acres; and (3) the assessment order in the case of one Shri Kapoor Singh passed by the same Assessing Officer wherein a similarly situated land was considered for which the fair market value as on 1-4-1981 was adopted on the same basis as canvassed by the assessee. 6. On the basis of the aforesaid, the learned counsel submitted that the fair market value adopted by the assessee stood supported by evidence. The learned counsel explained that the 'agreement to sell' dated 6-2-1981 with Shri Zora Singh has been found to be a reliable piece of evidence by the Tribunal in its order dated 8-10-2004. That therefore, the Assessing Officer was not justified in ignoring ....
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.... earlier, in the present case the dispute essentially pertains to the ascertainment of fair market value of land in question as on 1-4-1981 so as to arrive at the cost of acquisition for the purposes of computing capital gain accruing as a result of transfer of such land. Section 55(2)(b) allows an option to the assessee to adopt the fair market value of the land as on 1-4-1981 as the cost of acquisition wherein such an asset became the property of the assessee or of the previous owner before the 1st day of April, 1981. There is no dispute that in principle the assessee is entitled to seek the option as provided in section 55(2)(b) of the Act. The dispute only relates to the implication of the expression 'fair market value' as appearing in ....
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....hat the rate adopted is on the basis of a sale deed No. 586 dated 24-4-1981 of a comparable properly located at Village Dhandari Kalan in the vicinity of assessee's land. It is further pointed out that the comparable instance considered by the registered valuer was also considered by the DVO to evaluate a property at Village Dhandari Kalan in the case of one Shri Kapoor Singh copy of which has been placed at pp. 34 to 40 of the paper book. It is further submitted that the valuation of the DVO dated 17-1-2005 in this regard valuing the property as on 1-1-1981 has since been accepted by the Assessing Officer in the case of Shri Kapoor Singh, copy of the assessment order submitted at p. 32. We find that the Assessing Officer in the case of Shr....