TaxTMI 
TaxTMI 
2026 (7) TMI 626
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....d executed on 24.06.2009. Since, the petitioner owned such property even prior to 01.04.1981, the petitioner obtained a valuation report dated 11.11.2009 from a registered valuer, wherein the fair market value of such property as on 01.04.1981 was worked out at Rs. 11,03,000/- (based on Rs. 81/-per sq. mtr.). Thereafter, the petitioner filed return of income for the year under consideration on 23.08.2010 declaring total income at Rs. 24,31,170/- including Long Term Capital Gain of Rs. 22,94,720/- on sale of the said land. The petitioner, unfortunately passed away on 21.05.2012. After a period of four years from the end of the relevant A.Y. the respondent issued the impugned notice dated 30.03.2017 under Section 148 of the Act. The petitioner, vide letter dated 17.07.2017, requested the respondent to treat the original return of income as return filed in response to the Notice issued under Section 148 of the Act. The respondent, vide letter dated 17.05.2017, supplied copy of the reasons recorded for reopening. Thereafter, the petitioner raised objections against reopening contending that there is no escapement of income chargeable to tax and accordingly, the respondent was requested....
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....ing of capital gain, hence, it cannot be said that an income chargeable to tax has escaped assessment. 4.2 It is submitted that the respondent has worked out the fair market value of the land in question as on 01.04.1981 at Rs. 1/- per sq.mtr., on the basis of the details of sale instance of land in the year 1982 received from the office of "Sub-Registrar". According to the information of the Sub-Registrar a land admeasuring 53,700 sq.mtrs was sold in the year 1982 in the village Bhimpore for Rs. 60,001/-. Taking into consideration of the cost inflation index for the years 1981 and 1982 was 100 and 109 respectively, the respondent worked out the corresponding value of such land for the year 1981 at Rs. 55,046/- [i.e. Rs. 60,001 / 109 X100]. Accordingly, the value per sq.mtr. was calculated at Rs. 1/- per sq.mtr. i.e. [Rs. 55,046 / 53,700 sq.mtrs.]. It is submitted that the respondent has adopted Rs. 1/- per sq.mtr. as the fair market value of the land in question as on 01.04.1981 on the basis of the same worked out the alleged escapement of income. 4.3 Learned Senior Advocate Mr. Hemani has submitted that in case the Court is not inclined to accept the aforesaid submissions, ....
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....ing to the said instances of the land situated at Bhimpore in the year 1981. Thus, it is urged that the writ petition may not be entertained. ANALYSIS AND OPINION 6. We have heard the learned advocates appearing for the respective parties and perused the materials on record. 7. We are called upon to examine the validity of the reopening of the assessment for A.Y. 2010-11 by the respondent upon issuance of the impugned Notice under Section 148 of the Act. It is not in dispute that the notice has been issued against a dead person namely, late Smt. Padmaben Jinabhai Trivedi. During the relevant previous year, the deceased had sold the land in question situated at Bhimpore on 24.06.2009 for a consideration of Rs. 92,65,680/-, by adopting the fair market value as on 01.04.1981 at Rs. 81/- per sq.mtr. based on the Valuation report dated 11.11.2009 issued by the registered valuer. She thereafter filed her return of income on 23.08.2010, declaring long term capital gain of Rs. 22,94,720/- she passed away on 21.05.2012 and after a period of five years of her demise, on 30.03.2017 i.e. the very last day of limitation for A.Y 2010-11 the respondent issued a notice in the name of the ....
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....putation of income from capital gain can be found under section 55(2)(b) of the Act, whereunder an assessee has the option to take the actual cost of the acquisition of the asset or the fair market value of the asset on 1-4-1981, for the purpose of sections 48 and 49 of the Act. In other words, for arriving at the taxable figure of capital gain while deducting the cost of acquisition an assessee may adopt the figure of cost of acquisition actually incurred or the fair market value of the property as on 1-4-1981. It is only in this fact situation that, with a view to ascertain the fair market value of the capital asset, the Assessing Officer may refer the valuation of the capital asset to a valuation officer. 10. Under clause (a) of section 55A of the Act, the Assessing Officer is entitled to make the reference to the valuation officer in a case where the value of the asset as claimed by the assessee is in accordance with the estimate made by the registered valuer, if the Assessing Officer is of the opinion that the value so claimed is less than the fair market value. In any other case, as provided under clause (b) of section 55A of the Act, the Assessing Officer has to rec....