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TMI Blog2019 (3) TMI 1071X X X X Extracts X X X X X X X X Extracts X X X X ..... he Revenue and we hold that the findings of fact arrived at by both the Appellate Authorities below are based on relevant and cogent materials before them. Since both the sale deeds of comparable cases were produced by the Assessee before the CIT (Appeals), who had opportunity to compare the location and area of land involved in the said comparable cases, the findings of fact arrived by him on that basis cannot be said to be perverse. It cannot also be said to be perverse merely because the survey numbers are not discussed in the orders passed by the Appellate Authorities. Since the two documents were on the record of the Appellate Authority, in our opinion the said authority rightly held that the value depends upon several factors like ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnai on 11.03.2002 on payment of ₹ 4,59,35,168. These lands had originally cost the appellant a sum of ₹ 41,085 a long time back. In accordance with the provisions of the I.T.Act, 1961, the appellant was entitled to adopt the fair market value (FMV) as on 1.4.1981 for the purposes of computation of capital gains. The appellant in its return of income filed has shown the FMV of these lands at ₹ 1,20,00,375 as on 1.4.1981. In doing so, it has relied upon the report of an approved valuer for support. On indexation of this FMV as on 1.4.81, the appellant has arrived at the indexed cost of ₹ 5,40,43,976 and returned a capital loss of ₹ 59,69,832. The Assessing Officer considered the FMV adopted by the appellant to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its valuation by a report of a registered valuer which states that the value as on 1.4.81 to be ₹ 33,000 per cent. The Assessing Officer has stated that her valuation is as per enquiries made with and the rates obtained from the Sub- Registrar's office. The Assessing Officer has adopted the rate per acre for various portions of land. She has taken ₹ 60,000 per acre for about 86 cents of land, for the rest, she has adopted ₹ 30,000 per acre. The Assessing Officer then arrived at the FMV of ₹ 333 for each cent of land as against the rate of ₹ 33,000 for each cent of land adopted by the appellant. Thus, there is a huge difference in valuation of FMV as on 1.4.81. During the course of assessment proceedings, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat without prejudice to their submissions that the valuation of FMV as on 1.4.81 has to be taken at ₹ 33,000 for each cent of land, a reasonable amount may be considered in place of the amount of ₹ 333 per cent of land adopted by the Assessing Officer which is abnormally low. 4.5 I have carefully considered all the submissions and there is no doubt that when sale instances are to be considered for the purposes of adopting a comparable rate, the properties should also be comparable. The ratio of an incomparable property cannot be adopted and such adoption would be unjust. The sale instances given by the appellant in the course of appellate proceedings are certainly comparable, as the locations of these properties are c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indings of the learned CIT (Appeals) with the following observations:- 5.1 The explanation to Section 73 clearly states that it shall be speculation business in respect of a company other than a company whose gross total income consists mainly of income which is chargeable to tax under the head 'interest on securities, income from house property, capital gains or income from other sources'. As regards the issue of set off of loss against the income from capital gains is concerned, it is clear from a plain reading of the explanation given to Section 73, clearly indicates that where the gross total income of a company consists mainly of income which is chargeable to tax under the had capital gains and if any part of the busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale of shares, the income from capital gains would become the main source of income and therefore, the loss from purchase and sale of shares would be allowed to be set off against such capital gains. On the contrary, if the income from capital gains is less than the loss incurred from the business of purchase and sale of shares, then loss from purchase and sale of shares would be deemed as loss from speculative business and the same cannot be set off against the income from capital gains. The Assessing Officer is directed to rework the computation of appellant's income as directed above. 3. The learned counsel for the Appellant/Revenue submitted that the learned CIT (Appeals) was not justified in adopting the fair market v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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