TaxTMI 
TaxTMI 
2019 (5) TMI 996
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....ts and circumstances of the case. 2. In the facts the circumstances of the case, the learned Commissioner of Income Tax(Appeals) is not correct to direct the Assessing Officer to adopt Rs. 50,000/- per cent as fair market value as on 01.04.1981. 2.1 The learned Commissioner of Income Tax(Appeals) ought to have taken into consideration the fact that, in the year 1992, the Government of Kerala has acquired 1.59 ares of the property under consideration and awarded a sum of Rs. 66,4307- per ares, i.e., Rs. 26,894 per cent as compensation. The learned CIT(Appeals) should have considered that the fair market value of the very same property in the year 1981 cannot be more than that of in the year 1992. 2.2 The learned Co....
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....ee holding that the land belonging to Shri Kurian Joseph was not a highway facing property and that the Tribunal had decided the question of fact and therefore, the decision cannot be a precedence. The assessee's other plea of employing the reverse indexation method was also rejected by the Assessing Officer stating that the CBDT circular No. 636 dated 31.08.1992 nowhere prescribes that the assessing officer should adopt reverse indexing method for computation of cost of acquisition. In order to reach at a conclusion, the A.O. made enquiries with special Tahasildar (LA) MH No. 111, Vytilla. The Tahasildar informed that in the year 1991-92, the Govt. of Kerala had acquired land adjacent to NH 47 for widening of Highway and a part of assessee....
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....se is larger. The CIT(A) observed that in one case, the assessee estimated FMV as on 0104.1981 at Rs. 45,000/- per cent, whereas in the instant case, the same has been estimated at Rs. 60,000/- per cent by the assessee.ant. In both the cases, the A.O. relied on the registered document near to the date of 01.04.1981. In the case of Kurian Joseph, the A.O. estimated fair market value as on 01.04.1981 at Rs. 3000/- per cent, whereas in the instant case the A.O. has estimated the fair market value at Rs. 29927- per cent. The CIT(A) relied on the decision of the Tribunal in the case of Kurian Joseph which held as under: "11. Now, coming to the valuation of the land, the land is admittedly situated few meters away from the bypass road wh....
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....e demand of Rs. 60,000/- made by the assessee. The CIT(A) estimated the FMV of subject land Rs. 50,000/- per cent as on 01.04.1981 and accordingly, by relying on the decision of the Tribunal cited supra, directed the AO to adopt Rs. 50,000/- per cent as Fair Market Value of land as on 01.04.1981 for the purpose of computation of capital gains. 5. Against this, the Revenue is in appeal before us. The Ld. DR relied on the order of the Assessing Officer. 6. The Ld. AR submitted that the land was originally acquired by M/s Cochin Roller Flour Mills , a partnership firm between years 1966 to 1974 at a total consideration of Rs. 1,42,000/-. Later on, the firm was converted into a pvt ltd. company and book value of the land on date of conver....