2013 (2) TMI 604

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ation of capital gain. Shri T.M. Sreedharan, the ld. senior counsel for the taxpayers submitted that the taxpayers adopted the fair market value as on 01-04-1981 at Rs. 5,588 per cent. However, the assessing officer on the basis of the letter said to be received from Sub Registrar has fixed the fair market value at Rs.466 per cent. This was confirmed by the Commissioner of Income-tax(A). According to the ld. senior counsel in the case of one Shri C.R. Ravindran Nair, whose land was situated next to that of the taxpayers , the fair market value was adopted at Rs.2,300 per cent as on 01-04-1981. Therefore, the value fixed by the lower authorities at Rs.466 per cent is very low. 3. On the contrary, Smt. S Vijayaprabha, the ld. DR submitted th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lity for future development, etc. Therefore, for the purpose of estimating the fair market value as on 01-04-1981 we have to take into consideration the locality in which the land is situated, the accessability to infrastructure facilities, comparative sale instances in the locality, potentiality for future development, distance between the land and the bus stand, railways station, airport, etc. The guideline value fixed by the Sub Registrar is only a guideline value to ascertain the market value. The guideline value fixed by the government to guide the Sub Registrar may be a basis for fixing the formal market value for collection of stamp duties. Therefore, though the guideline value fixed by the government to guide the Sub Registrar may b....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...., Trivandrum. The amount was not deposited in the capital gain bond. The claim of the taxpayers before this Tribunal is that the money was intended to be deposited in the capital gain bond. However, the bank deposited the amount in the fixed deposit. We are unable to accept the claim of the taxpayers. The legislature has framed the scheme for the purpose of giving exemption from the capital gain tax by asking the taxpayer to deposit the amount in the capital gain bond scheme. Therefore, if the taxpayer wants to take benefit of the scheme the money has to be deposited in the capital gain bond. Deposit of money in the fixed deposit cannot be construed as deposit in the capital gain bond. If at all there was any negligence on the part of the b....