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TMI Blog2018 (2) TMI 1644X X X X Extracts X X X X X X X X Extracts X X X X ..... nd and building as on 1.4.1981 at ₹ 18 lac on the basis of some valuation report. AR could not draw our attention to the said report of the Registered valuer for ascertaining if ₹ 18 lac was only towards the building or for both the land & building. Under these circumstances, we remit the matter to the file of Assessing Officer for examining the Registered valuer’s report and other connected material for ascertaining if value of land is part of ₹ 18 lac or it is independent. In case it is found from such material that the value of building along with land as on 01.04.1981 is ₹ 18 lac, then, there is no need for increasing ₹ 6.40 lac towards the value of land as on 01.04.1981 and vice versa. Indexation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... approached the Tribunal. The appeal of the Revenue got accepted by the Tribunal vide its order dated 11.07.2012. The assessee went to the Hon'ble High Court. Vide its judgment dated 25.05.2017, the Hon'ble High Court has remitted the matter of valuation of two properties viz., Saidakadal Residential house and Gulmarg land/hut to the Tribunal with certain directions, which we will advert to at the appropriate stage. Ex consequenti, we are taking up the issue in pursuance of the directions given by the Hon'ble High Court. 3. Firstly, we will espouse the Saidakadal property. The Assessing Officer charged long-term capital gain on transfer of the asset by treating it as a distribution to its partners u/s 45(4) of the Act and adop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee had categorically said that it had decided to exercise the option of the fair market value against the book value. This is the reason which led the Hon'ble High Court to remit the matter to the Tribunal with regard to this property. 4. We have heard both the sides and perused the relevant material on record. At this juncture, we want to clarify that insofar as the chargeability to tax by treating the transaction as covered u/s 45(4) of the Act is concerned, the same has attained finality by the earlier order of the Tribunal, which part has not been disturbed by the Hon ble High Court. There are two issues in so far as the determination of capital gain on the transfer of the Saidakadal property is concerned. 5. First is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consider the fair market value of the land and building as on 01.04.1981 and, thereafter, apply indexation for determining the total amount of capital gain from this property. Needless to say, the assessee will be given an opportunity of hearing in such proceedings. 7. The other issue is regarding the valuation of Gulmarg land/hut. The Tribunal noted in para 3.3 of its order that no fair market value in respect of Gulmarg hut was given and no valuation report regarding this property was furnished by the assessee. It is discernible from the assessment order that the said property was dismantled and a new property was constructed over the piece of land. However, Mr. Aadil Maqbool, a partner of the assessee firm appeared before the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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