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TMI Blog2020 (9) TMI 320X X X X Extracts X X X X X X X X Extracts X X X X ..... ultural land. No substance in this contention of the assessee because the land being an agricultural land is not in dispute. Due to development of the area over the period, the land is no more exempted u/s 2(14) of the Act and the assessee has accepted this fact by declaring the long term capital gain on sale of this land. Even otherwise, the assessee has not disputed the location of the land which is one of the most important factors for determining the fair market value at the time of sale. Since this land in question has been inherited by the assessee alongwith two other legal heirs, therefore, the fair market value as on 01/04/1981 would be taken as per the status of the land on that date. Subsequent change in the surrounding circumstances would not alter the status of the land as on 01/04/1981. A.O. has rightly taken the fair market value as on 01/04/1981 by taking a comparative sale instance. The second objection raised by the assessee is against determination of the fair market value by the DVO U/s 50C(2) though, the assessee has contended that the value of the land should have been taken as it is mentioned in the sale deed. However, the fair market value determined by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. AO, in invoking the provisions of section 50C of the IT Act, 1961. The action of the ld. CIT(A) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by considering the sale consideration at ₹ 10,00,000/-. 5. In the facts and circumstances of the case and in law, the ld. AO has erred in, computing the indexed cost of acquisition at ₹ 17,105. The action of the ld. AO is illegal, unjustified, arbitrary and against the facts of the case. Appropriate relief may please be granted. 6. The assessee craves his right to add, amend or alter any of the grounds on or before the hearing. 5. Grounds No. 1 and 2 of the appeal are regarding validity of reopening of the assessment. We have heard the ld DR and carefully perused the orders of the authorities below. The ld. DR has pointed out that these two grounds were never raised by the assessee either before the A.O. or before the ld. CIT(A), therefore, these are not arising from the impugned orders of the authorities below and particularly the order of the ld. CIT(A). Thus, the ld DR has objected to the grounds No. 1 and 2 raised by the assessee. On careful perusal of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee filed return of income on 08/05/2017 declaring total income of ₹ 1,91,339/- under the head income from long term capital gain . The A.O. issued a show cause notice to the assessee for adopting the deemed full value consideration of ₹ 71,13,637/- and 1/3rd share of the assessee comes to ₹ 23,71,212/-. The assessee objected to the adoption of deemed full value consideration on which the A.O. conducted an enquiry and called for the entire record from the Stamp Value Authority alongwith inspection report. Further the A.O. referred the matter to the DVO/AVO for determination of fair market value of the property in question. The DVO determined the fair market value U/s 50C(2) of the Act at ₹ 57,19,400/- and 1/3rd share of the assessee comes to ₹ 19,06,467/-. The A.O. adopted sale consideration as determined by the DVO/AVO at ₹ 19,06,467/- and computed the long term capital gain after allowing the indexed cost of acquisition being the fair market value as on 01/01/1981 at ₹ 18,89,362/-. The assessee challenged the action of the A.O. before the ld. CIT(A) but could not succeed. 7. The assessee has filed written submissions before the ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the purpose of indexation, in the same way, fair market rate of agricultural land on the date of sale should have been taken into consideration for the purpose of section 50C of IT Act. The determination of capital gains of ₹ 18,89,362/- as against declared capital gains of ₹ 1,91,360/- is therefore unjustified act on part of the ld. AO. It is requested to remand the matter to the Id. AO with direction to adopt fair market value of bare agricultural land on the date of sale and not the value of land used for residential purposes. Thus, it is clear that the assessee has raised objection against the computation of indexed cost of acquisition by taking sale instance of land on 16/06/1981. The contention of the assessee is that when the property in question as assessed by the Stamp Value Authority as non-agricultural land then the fair market value as on 01/04/1981 should have been considered for non-agricultural land instead of agricultural land. We do not find any substance in this contention of the assessee because the land being an agricultural land is not in dispute. However, due to development of the area over the period, the land is no more exempted U/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 71,13,637/- vide order No. 65/13 dated 30-01-2014. This office made request vide letter No. 518 dated 15-09-2017 to the DIG (Stamps), Bikaner (at present Sikar) to provide the copy of complete case file. The copy of complete case file received in this office on 04-10-2017from the office of DIG (Stamps), Sikar vide their office letter No. 2471 dated 29-09-2017. The A/R of the appellant submitted that the agricultural land was never converted in domestic or commercial land whereas the DVO had applied domestic rate in determining fair market value. Where rate per bigha of bare agricultural land of the year 1981-82 was adopted for indexation under section 48 of IT Act, the rate per bigha of bare agricultural land in the year of sale should have been adopted. In this case, while adopting rate per bigha of Agricultural land, the fair market value of domestic/commercial was taken into consideration. Ld. AO had not taken into consideration, the report of the Sub-Divisional Magistrate, copy of which is enclosed herewith, accepting it to be bare agricultural land and therefore, for the purpose of section 50C of IT Act, the value of agricultural land, on identical facts, cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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