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2016 (3) TMI 1061 - AT - Income TaxAdoption of fair market value as at 1-4-1981 of the property sold by the assessee - Held that:- The rates adopted by the AO by obtaining the same from the office of District magistrate for 1984 cannot be applied for determining fair market value of property as at 1-4-1981. Therefore we are also not approving the rates adopted by the AO as well as by assessee. Therefore according to the law it is for the assessee to substantiate fair market value of the property by submitting the valuation report obtained from authorized valuer. If the assessee does not exercise this option than AO does not have any option but to adopt the cost of acquisition for the purposes of determining the capital gain in the hands of the assessee. As admittedly assessee has not exercised this option, in the interest of justice one more opportunity is given to assessee to submit before AO the fair market value of the assets as at 1-4-1981 by submitting the valuation report of the property from authorized valuer not later than four months from the date of receipt of this order. After that AO may act according to the provision of section 55A of the Income tax Act and decide the issue on merits. In view of this ground no 1 of the appeal is set aside to the file of AO with above direction to consider the valuation report, if any, submitted by the assessee in above time frame. - Decided in favour of assessee by way of remand Addition of deduction u/s 54B - whether the assessee has purchased agricultural land in the name of his wife and the payment was made by the assessee from his own source through banking channel - Held that:- There is no doubt that the property has been purchased by the assessee in the name of the wife of the assessee and according to the decision relied up on by the LD AR, assessee is eligible for deduction u/s 545B of the Act provided the funds from which this asset is acquired are invested by the assessee. By producing the bank account of the assessee it is apparent the cheque nos mentioned in the sale deed and the bank account are same and same has not be disputed by the ld DR. Hence assessee is entitled for the benefit of deduction u/s 54B of the act. - Decided in favour of assessee
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