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Issues Involved:
The issues involved in this case are the determination of the acquisition value of land for calculating capital gains tax and the application of circle rates for land situated in specific areas. Acquisition Value of Land: During the assessment proceedings, it was found that the assessee had sold plots of land as the only source of income for the year. The Assessing Officer (A.O.) questioned the cost of acquisition claimed by the assessee and conducted inquiries to verify the fair market value of the land. The A.O. determined the cost of acquisition at Rs. 35/- per Sq. Yd., resulting in an addition of Rs. 53,87,515/- to the assessee's income. Upon appeal, the Ld. Commissioner of Income Tax (A) found the A.O.'s determination untenable based on documentary evidence provided by the assessee. The Ld. Commissioner directed the re-computation of long term capital gain at the rate of Rs. 150/- per Sq. Yd. as claimed by the assessee. Application of Circle Rates: The Ld. Commissioner of Income Tax (A) noted that the A.O. had applied a circle rate of Rs. 35/- per Sq. Yd. to determine the cost of acquisition, which was disputed by the assessee. The Ld. Commissioner highlighted several reasons why the A.O.'s approach was incorrect, including the location of the land, government programs for socially backward classes, and the rates applied by other owners in the area. The Ld. Commissioner emphasized that the A.O. failed to rebut the documentary evidence provided by the assessee, leading to the dismissal of the Revenue's appeal. In conclusion, the Appellate Tribunal upheld the Ld. Commissioner's order, dismissing the Revenue's appeal and affirming the re-computation of long term capital gain based on the acquisition value claimed by the assessee.
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