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TMI Blog2014 (2) TMI 1106X X X X Extracts X X X X X X X X Extracts X X X X ..... to any sale transaction in neighbouring land for determining the fair market value of the land and simply adopted the guideline value as provided by the Sub-Registrar and accepted by the Assessing Officer for determining the fair market value, which in our opinion, is found to be incorrect – thus, the order of the CIT(A) set aside and the matter remitted back to the AO for examination – Decided in favour of Assessee. - I.T.A.No.362/Mds/2012 - - - Dated:- 17-2-2014 - Dr. O. K. Narayanan And Shri V. Durga Rao,JJ. For the Petitioner : Dr. Anita Sumanth, Advocate For the Respondent : Shri Hari Rao, JCIT ORDER Per V. Durga Rao, Judicial Member: This appeal filed by the assessee is directed against the order of the Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vacant land. Since the land was acquired before 01.04.1981, the guideline value as on 01.04.1981 is to be adopted as the cost of the base year. Therefore, the Assessing Officer has obtained guideline value of the land as on 01.04.1981 from the Sub-Registrar, Pallavaram and accordingly valued the land at Rs.25,920/- and intimated to the assessee for filing objections, if any to adopt the same as cost of the land as on 01.04.1981. Since, there was no explanation/objection from assessee's side, the Assessing Officer has completed the assessment. 3. The assessee carried the matter in appeal before the ld. CIT(Appeals) and after considering submissions/explanation of the assessee, confirmed the order of the Assessing Officer by observing as u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese circumstances, the value mentioned by the Sub-Registrar of Immovable Property is the best indicator to find out the Fair Market Value as on 01.04.1981. (c) The appellant has not given any instance of sale in the adjacent area as on 01.04.1981 to come to a conclusion that the Fair Market Value as on 01.04.1981 is the same value as adopted. (d) In the case of P. Ramachandran, Hon'ble ITAT of Chennai, 'A' Bench, ITA No.1608/07 dated 12.12.2008, it was held that unless the assessee gives a sale instance as on 01.04.1981, the Sub- Registrar rate can be taken for computation of Capital Gains. (e) Similar view as mentioned above in (d) above was reiterated by Hon'ble Chennai ITAT in the case of Dr. V. Ramachandran, ITA No.310/08 dated 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er is not binding on the Department and he strongly supported the order passed by the lower authorities. He has also submitted that while finalizing the assessment, the assessee was called for objection/explanation, which was not responded. Therefore, now he cannot raise the objection against the value adopted by the Assessing Officer. 7. We have heard both sides, perused the materials on record and gone through the orders of authorities below. The issue involved in this appeal relating to property sold by the assessee of 0.54 cents situated at Zamin Pallavaram Village, Tambaram Taluk, Kanchipuram District. The assessee has inherited the property through Will dated 15.07.1972 which was devolved on him with effect from 07.03.1973 on accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment regarding valuation of the property has evidentiary value and they are only intended to give information or instruction to the registering authorities but the guideline value alone is not a deciding factor. It has to be depend upon various facts, such as nature of land, location of the land, etc.. The ld. CIT(Appeals) has observed that in the valuation report, the Registered Valuer has not given what are the verifications done by him, what are the local enquires caused by him, what is the necessary information and explanation received by him and simply stated that the valuation report is vague. We find that the Department has not made any independent investigation and collected any information with respect to any sale transaction in ne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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