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TMI Blog2024 (4) TMI 983X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer on account of long-term capital gain at Rs. 44,99,360/-. 3. Brief facts of the case are that the assessee is an individual and on the basis of information about sale of immovable property, case of the assessee was reopened under section 147 of the Act after obtaining necessary approval from the Competent Authority. The regular return of income for A.Y. 2016-17 was furnished on 28.04.2021 declaring total income at Rs. 3,46,060/-. The ld. Assessing Officer after serving valid notices under sections 142(1) and 143(2) alongwith questionnaires asked the assessee to explain the transaction of sale of immovable property during the year. After considering the submissions, the ld. Assessing Officer observed that the assessee bein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loss at Rs. 4,99,355/-. 6.2. A perusal of the valuation report shows that the valuer has calculated both, the indexed cost of acquisition of the property sold and the market value thereof at Rs. 1,08,18,000/- which is not practically possible. The valuer has adopted a reverse method using indexation for determining the market value of the property sold as on 01.04.1981 which is not logical. The valuer has actually valued the property sold as on 22.12.2015 not as on 01.04.1981. He could have referred to the circle rate of the property as on 01.04.1981 but he did not do so. In such circumstances, Id. AO had no option except to take cost of acquisition of the property at Rs. 5,00,370/-. In view of the facts of the case, I am of the consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has estimated the fair market value of the property at Rs. 1,08,18,000/- and thereafter applying the reverse method of indexation, calculated the cost of property as on 01.04.1981 at Rs. 10,00,740/-. However, ld. Assessing Officer while carrying out the assessment proceedings has calculated the impugned amount by taking the cost of acquisition at Rs. 5,00,370/-. The ld. CIT(Appeals) has also confirmed the view of the ld. Assessing Officer. 8. We have, however, failed to find merit in the finding of both the lower authorities for the reason that ld. Assessing Officer has himself noted that the cost of acquisition as on 01.04.1981 is at Rs. 5,00,370/- (50% of cost at Rs. 10,00,740/-), but while calculating the long term capital gain has not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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