TaxTMI 
TaxTMI 
2016 (9) TMI 1074
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....A.Y 2002-03 on 30.10.2002 declaring total income of Rs. 5,95,690. During the assessment proceedings u/s 143(3) of the I.T. Act, the AO observed that the assessee has declared income under the head "capital gains". While examining the correctness of the same, AO went into the details and observed that the assessee had acquired the land admeasuring 4533 and 2266 sq. yards situated at Jail Road, Gulbarga for a consideration of Rs. 66,000 and Rs. 26,500 in the year 1967 through auction and that the possession was given on 06.10.1969 and got them registered on 02.05.1977. He observed that during the relevant previous year, the assessee represented by its partners, entered into a partnership with another firm M/s. Jawali Builders and Developers a....
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....apital gain against which the assessee preferred an appeal before the CIT (A), who confirmed the assessment order and the assessee is in second appeal before this Tribunal. 3. The learned Counsel for the assessee, reiterated the submissions made before the authorities below and submitted that the assessee has relied on 4 sale instances for estimation of the fair market value of the property as on 1.4.1981. According to him, during the requisite period i.e. 1981, the average value of land in similar location was Rs. 1755/sq. yard. He submitted that it was on the basis of these sale instances which are also govt. auctions, the assessee has adopted Rs. 1000 per sq. yard which is reasonable and justified. The learned DR, on the other hand, sup....
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.... 88.89 1,56,000 1,56,000 1,755 8 103 Govt. Auction 22.04.1981 2649/82-83 07.03.1983 88.89 1,61,000 1,61,000 1,811 9 102 Govt. Auction 24.04.1981 2648/82-83 07.03.1983 88.89 1,61,000 1,61,000 1,811 5. From the details of the sale instance of plots in the same area during the same period i.e. March, 1978 to 20.04.1981, it is noticed that the Market Value has varied between Rs. 371 per sq. yard to Rs. 1811 per sq.yard. Wide difference can be attributed to a number of factors such as location, extent of land and the taste of bidders. The area of plots considered for comparison is very less compared to the area of the plot contributed as capital by the assessee. As rightly pointed out by the learned counsel for ....