2013 (2) TMI 902 - AT - Income Tax

Summary

Issues involved: Determination of fair market value of property sold as on 01.04.1981 for assessment year 2006-07 u/s 143(3) of the Income Tax Act 1961.

The Appellate Tribunal ITAT Chennai heard cross appeals by the assessee and Revenue regarding the fair market value of a property sold as on 01.04.1981. The assessee argued for a higher value, while the Revenue contended that the Assessing Officer's value should be upheld.

The assessee, a company engaged in manufacturing and trading, had filed its return declaring a loss and had sold land and building in 2006. The Assessing Officer determined the fair market value lower than claimed by the assessee, leading to a dispute.

The CIT(A) sought a remand report and ultimately determined the fair market value based on a case law precedent, differing from both the assessee's and the Assessing Officer's values. Both parties appealed the decision.

After considering the arguments and documents, the Tribunal found the values presented by both parties to have limitations. Following a precedent case, the Tribunal decided to adopt an average value between the Sub-Registrar's value and the assessee's claimed value, as the fair market value of the property as on 01.04.1981.

Consequently, the appeal of the assessee was partly accepted, and the Revenue's appeal was dismissed.