TaxTMI 
TaxTMI 
2016 (5) TMI 480
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....d by the Learned AO u/s 143(3) read with section 254 of the Income Tax Act, 1961 (hereinafter referred to as the 'Act'). 2. The assessee has raised various grounds in this appeal. But during the course of hearing, he stated that the only ground that requires to be adjudicated is determination of fair market value as on 1.4.1981 for the purpose of granting deduction while computing capital gains. The revenue's ground is only on the financial year from which indexation benefit has to be granted to the assessee. Both the appeals are taken up together and disposed off by this common order for the sake of convenience. 3. The facts in brief ,in the instant case, order u/s. 143(3)/147 was posted on 31/12/2008 determining income of the assess....
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....communication F. No. 13/CG/VO-Ill/ITD/KOL/ 10-11/875 dt. 31/03/2011 has provided the following valuation in respect of the immovable property situated at 82/1 Narasingha Dutta Road, Howrah- 711101 :- A. FMV of the .property as on 25/05/2004 Rs. 73,26,350/- B. FMV of the property as on 01/04/1981 Rs. 8,90,869/- The Valuation Officer-III, I.T Department, Kolkata has provided a copy of the said valuation report to the assessee. 3.2 The Learned AO as per the directions of this Tribunal in the first round of appellate proceedings referred the valuation of the property to DVO as on 1.4.1981 and as on the date of sale i.e 25.5.2004 and computed capital gains. While computing capital gains, the Learned AO did not give indexa....
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.... Circular No. 636, dated 31-8-1992 which states that if an asset was acquired before 1-4-1981 then the market value of the capital asset as on 1-4-1981 is to be taken for indexation. In the present case the Assessing Officer himself allowed the benefit of "fair market value" of the property as on 1-4- 1981 to be cost under section 55(2)(b)(ii) of the Act. Under section 2(49A) the period of holding of the capital asset in the hands of the assessee was the period commencing from 16-4-1958 till the date of transfer. It is therefore quite clear that as on 1-4-1981 the asset was statutorily considered to be held, by the assessee under section 55(2)(b)(ii) read with section 2(49A) of the Act. In our considered opinion therefore, the cost inflatio....
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.... the previous owner is excluded then it will lead to absurd result. Such interpretation of section 48 will be against the intent and object of the enactment and will be against the overall scheme of taxation of capital gains in case of inherited assets. The cardinal principles of interpretation of statutes is that if literal meaning of the statute leads to an absurdity then the statute should be interpreted in a manner which will result in harmonious interpretation which avoids absurdity and promote the objective of an enactment. We, therefore, direct the Assessing Officer to recompute the capital gains by applying cost inflation index of 100 per cent applicable for financial year 1981-82." Respectfully following the aforesaid judicial p....
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....ssessee cannot have any grievance of the fact of Learned AO referring to DVO for determination of fair market value as on 1.4.1981. If the assessee has got any objections to the value determined by DVO, he is at liberty to file the same. But he chose not to file any objections for the same inspite of several opportunities provided to him by the Learned AO which is elaborated in the assessment order. Moreover, the assessee ought to have carried the matter further to the Hon'ble Calcutta High Court against the order of this tribunal in the first round of appellate proceedings in case if he had any grievance. We find that the assessee was not able to produce any evidence in this regard before us. We find that the determination of fair market v....