TaxTMI 
TaxTMI 
TaxTMI 
2014 (5) TMI 879
X X X X Extracts X X X X
X X X X Extracts X X X X
....n of Ld. A.O. of considering fair market value of the property sold as agriculture land as on 1.4.1981 instead of non-agriculture considered by the appellant. The appellant most humbly submit that on the facts and circumstances of the case and in law the fair market value of the property sold should have been considered as non agriculture by the Ld. A.O. and prays that your Hon'ble ITAT be pleased to hold so now. 3. The learned Commissioner of Income Tux (Appeals) has erred in law and on the facts of the appellant's case in confirming the action of Ld. A.O. of considering fair market value of the property sold at Rs. 2.32 per Sq. Ft as on 1.4.1981 instead of Rs. 18/-pcr Sq. Ft. valued by approved valuer. The appellant most humbly submit that on the facts and circumstances of the case and in law the fair market value of the property sold considered by the appellant is the correct value and prays that your Hon'ble ITAT be pleased to hold so now." 3. The issue involved in this appeal is taxability of long term capital gain on sale of land. During the year under appeal, assessee has sold his ancestral land situated at village Atladara bearing revenue survey no. 559. The....
X X X X Extracts X X X X
X X X X Extracts X X X X
....year 1981. The assessee was asked as to why the cost of land for purposes of computing long term gain should not be adopted as Rs. 2.32 per sq. ft. The assessee was also given the copy of Haq Patrak in Form No. 6 which was obtained from the Mamlatdar village Baroda city, Baroda. In response to this assessee filed following written submissions: "The assessee has sold non-agriculture land. The indexation of the said property should be accordingly made. The value as on 01.04.1981 of non-agricultural land is to be taken. The valuation report from the registered valuer has been furnished and as per the said Report, the value of the said land as on 01.04.1981 is Rs. 18 per Sq. Ft. Over and above, the assessee furnished a copy of valuation report on 01.04.1981 of land bearing RS NO. 630,631/1, 631/2, and as per the said report the value on 01.04.1981 is Rs. 100 per Sq. Mt. The said land is situated behind Transpek-silox, where as the land of assessee is just near Miles India Ltd., which has better location than that of land for which valuation, report is furnished. Accordingly, the value adopted by assessee is quite reasonable looking to the better location which may be please be....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aim of deduction by way of revised return. Looking to the position of law, the details with evidences filed by the assessee for considering the same for the purpose of cost of improvement for indexation, are therefore, not considered in view of the judgment of Hon'ble Supreme Court as cited Supra. 8. In view of the above, for the purpose of computing the capital gain on sale of land, the cost of the acquisition as on 1.04.1981 being agriculture land is adopted at Rs. 2.32 per Sq. Ft. as discussed above. As against Rs. 18/- adopted by the assessee considering the cost of land as on 01.04.1981 being non-agriculture land as per the valuation report earlier filed. Penalty proceedings u/s 271(1)(c) of the Act for furnishing inaccurate particulars of income have been initiated separately. Subject to the above and information available on record, the total income of assessee is computed as under: "Income from Long Term Capital Gain:- Sale of land at village Atladar (1/2 share of sale consideration Rs. 89,64,000/- ) Rs. 44,82,000/- Less: Index cost of acquisition (Area of land sold 9798 Sq. Mt=105468 Sq. Ft.) Cost of acquisition as on 01.04.1981 being Agriculture land @ 2.32 per ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....bmit that the Ld. A.O. ought to have substantiated his action of taking value as agriculture and should not have rejected the appellant's contention in summary manner. He has neither given any reasons for disregarding the appellant contention that the value as per non agriculture should be considered nor proved his contention that value as agriculture should be considered. 3.4.4. As far as the second contention of Ld. A.O. of taking fair market value of the subject land for Rs. 2.32, the appellant most humbly submits that the value considered by the Ld. A.O. is not at all a fair market value. On the contrary that sale instances quoted by the Ld. A.O. are absurd. We have to draw your honour's kind attention to the sale instances quoted by the Ld. A.O. on page 5 Para 6, wherein the Ld. A.O. has given 5 sale instances. The first sale instance is dated 14.8.1981 and is of non-agricultural land and per which price of land sold was of Rs. 4/- per Sq. Mtr. and the remaining 4 instances are of the one agriculture land sold on 30.4.1981 but sold in 4 parts, in other words there are only 2 sale instances. As far as putting reliance on the same is concern, the appellant most humbly ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t ten times of the ULC rate. The appellant also submit that the Ld. A.O. has not pointed out any defects, inconsistency in the valuation report of the approved valuer to disregard his valuation. The appellant further submits that during course of hearing he had submitted the sale instances of the nearby places as well as copy of the valuation report of other valuer who had valued land situated in nearby area in support of his contention that valuation made by the approved valuer is reasonable. The copy of the same is enclosed herewith as Annexure 4 & 5. From the Annexure- 4 being an report of the approved valuer Shri Rajesh P. Rajpara, your honour will observe that he has valued the fair market value of the land situated behind the unit of Transpack - Silox Ltd. at Rs. 10/- Sq. Ft. The land valued by him is nearest to the chemical unit so it has pollution problem, while the land sold by the appellant is almost half K.M. before it and on the opposite side on main road facing. The size and other factors are more or less same. Looking to the said factors etc the fair market value of Rs. 18/- per Sq. Fts. valued by the approved valuer is reasonable on facts. From the Annexure - 5 be....