9911796707
TMI Blog2015 (10) TMI 730X X X X Extracts X X X X X X X X Extracts X X X X ..... he issue cited above are stated in brief. The assessee was allotted a piece of land admeasuring 0.50 acres in an Industrial Estate located in Chennai by Tamilnadu Small Industries Development Corporation Ltd in the year 1979 at a cost of Rs. 27,500/-. The assessee obtained assignment of land by paying 50% of the cost on 23.02.1979. During the year under consideration, the assessee sold the above said industrial land for a sum of Rs. 1.55 crores. While computing the Capital gain, the assessee adopted the fair market value as on 1.4.1981 at Rs. 25.00 lakhs. The assessee claimed that it had spent money on improvement of the land also. However, it did not furnish any document to substantiate the said claim. The AO made enquiries with the Tamiln ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gned property as on 1.4.1981 at Rs. 21,60,000/-. He submitted that the Registered Valuer has considered the nature of the land, its advantages, the Guide line Value fixed by the State Government for collecting Stamp duty etc. and accordingly determined the fair market value. He further submitted that the DVO, on the contrary, did not furnish any basis for determining the fair market value as on 1.4.1981 at Rs. 44,000/-. He submitted that the Guide Line Value fixed by the State Government for the purpose of collecting stamp duty was Rs. 1,20,000/- per cent as on 1.4.1981. He further submitted that the prevailing market value of the impugned property was more than the above said amount. He further submitted that the assessee has carried out i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the said report is very much bald without giving any basis or authority. For the sake of convenience, we extract below relevant observations made by the DVO in his report:- ".....The property was inspected by the then District Valuation Officer on 10.3.2008 & 15.5.2008 and inspected by me on 3-9-2009 market enquiries were made on various dates. Whereas a Preliminary Order was issued to M/s Ajit India (Madras) Pvt Ltd, Hamid Buildings, No.191, Mount Road, Chennai 600 006 vide F No. DVO/MDS/CG(27)/2008-09 dated 9.6.2009, assessee by the then District Valuation Officer's proposal to estimate the fair market value of the property at Rs. 44,000/- (Rupees Forty four thousand only) as on 01-04- 1981 in respect of the above property. The ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed at a lower rate to achieve the Government's objectives. This fact is very much evident when we consider the "Guide Line Value" fixed by the State Government for the purpose of collecting stamp duty under the Registration Act. The assessee has written a letter dated 01-11-2004 to the concerned Sub Registrar seeking the amount of Guide line value fixed for the impugned property. The Sub-Registrar has certified that the Guide Line Value as on 1.4.1981 for the impugned property was Rs. 1,20,000/- per ground. One ground consists of 2400 Sq. Ft. The impugned property is having an extent of 21780 Sq. Ft. Hence the Guide Line Value of the impugned property is Rs. 1,20,000 x 21780/ 2400 = Rs. 10,89,000/-. 9. There should not be any dispute that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ermined almost the double the amount of Guide Line Value, which also appears to be on the higher side. This Tribunal is of the considered opinion that after taking into consideration the commercial importance of the property and the infrastructures available, the ends of justice would be met if the fair market value of the property as on 1.4.1981 is adopted by increasing the Guide Line value by 25% and the same work out to Rs. 13,61,250/- (Rs.10,89,000/- x 1.25). Accordingly, the orders of the lower authorities are set aside and the assessing officer is directed to estimate the fair market value of the impugned property as on 01-04-1981 at Rs. 13,61,250/- and compute the capital gain accordingly. 11. In the result, the appeal of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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