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TMI Blog1978 (1) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 42,000 on the development of the colony. 67 plots measuring 12,877 sq. yds. were sold during 1970-71 relevant for the asst. yr. 1970-71 for a sum of Rs. 3,17,000 and plots measuring 1,732 sq. yds, were sold for Rs. 39,000 in the following year. A sum of Rs. 33,460 was offered for assessment as capital gain for the asst.yr.1971-72 as per the following details: 1. CAPITAL GAIN ; Area sold : . As per detailed list prepared with reference to Sale deeds... 12877 sq. yds. (+) Area covered under Roads and Parks (30 per cent)..... 3863 " " Total area disposed of — 16740 " " (A) Sale price : . As per Sale deeds detailed list attached. Rs. 3,17,000 (B) Cost price : . (I) Cost of the land with reference to average rate worked out on the basis of sale transactions took place in or about Jan. 1954(Copies of Sale deeds enclosed) Average rate comes to 12.50 per sq. yds.16740 X 12.50. 2,09,250. (ii) Cost of Improvement : . . Earth Levelling charges Rs. 32,850 . Brokerage Rs. 6,462 . Conveyance Rs. 62 . Advertisement Rs. 2,740 . . Rs. 42,114 Rs. 42,114 . Total Rs. 2,51,364 Capital Gain (A-B) Rs. 65,836 . (.) Statutory exemption Rs. 5,000 . . Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner found that the ITO erred in relying on the sale rate of 17 sale instances, which pertained to Uttam Puri and G.T. Road. He was of the opinion that the land, covered by the 17 sale instances, was situated within the Miller Ganj area of Ludhiana City and within the Municipal limits. He observed that these plots had been sold in the area, which was coming up as residential colony provided with roads etc. The burden of the findings of the Commissioner is that whereas land in dispute was merely agricultural land on 1st Jan., 1954, plots having been sold under 17 sale deeds furnished by the assessee to the ITO, situated in developed colony and therefore, they did not constitute to be the comparable cases. He, therefore, took the view that the 'like' was not compared with 'alike' and, therefore, the order of the ITO was erroneous in so far as it was prejudicial to the interest of the Revenue. It is also observed by him that village Taraf Saidan is wide area, which extends to the heart of Ludhiana City on one side and goes to comparatively much unimportant area beyond Budha Nalla on the other side. Assessee's land, be observed is situated on the other side of the Budha Nalla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est to support the order of the CIT. Let us first highlight the so called mistakes pointed out by the Commissioner in his order. The first error which the Commissioner points out is that the ITO compared the disputed and with the un-comparable material. He points out that the ITO wrongly relied upon the 17 sale instances, furnished by the assessee. Admittedly, the assessee furnished the copied of 17 sale deeds to the ITO. These sale deeds pertain to the sales of plots of land, which is situated in Miller Ganj area. The Commissioner writes in his order that the Miller Ganj area of Ludhiana City is within the Municipal Limits. Plots sold in Miller Ganj coming up as residential colonies were provided with roads etc. As compared to this the land of the assessee was agricultural land on 1st Jan., 1954. The burden of Commissioner's finding is that the land developed for, colonisation cannot be compared with the agricultural land. The question for consideration is whether the ITO in fact, has compared the agricultural land with the land developed for colonisation. We are afraid to say that this finding of the Commissioner is not supported by any material, available on record. We have care ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cate of Patwari also gave the average of sales made during the year 1953-54 of Rs. 12.41 and Rs. 12.82 per. sq. yard. These two rates purported the sales of two different types of land. Making the estimate on the basis of the material available on record, the ITO observed as follows:— " In view of the above discussion, the evidence placed on the file and considering the sale price also, I shall estimate the fair market value of the land @ Rs. 12 per sq. yard." 8. We, therefore, do not agree with the Commissioner's finding that the ITO merely relied upon the 17 sales deeds, which purported to the land having developed for colonisation and he found them comparable cases. The ITO did not make up his mind on the basis of 17 sale deeds. He, rather found that they did not constitute to be comparable cases and he then proceeded to collect further material to ascertain the value of the agricultural land as on 1st Jan., 1954. We therefore, do not find any error in the order of the ITO in so far as the controversy of 17 sale deeds is concerned. 9. Another error pointed by the Commissioner is that the land of the assessee is comparable with the land of village Jodhewal, which is situate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... land of the applicant and Abadi Atampuri. Abadi Atampuri starts from the land of the applicant and extends to Miller Ganj. It is also certified that the Ghanta Ghar which is located at the G.T. Road and Miller Ganj are within one mile, approximately, of the land of the applicant. It is also certified that Abadi Sundar Nagar is not an approved Colony. It is developing area and the applicant is using it for fairly good agricultural purposes. In the land sold by the applicant, its purchasers, S/Shri Vijay Kumare, Subh Ram etc., have set up a Dairy Farm and Poultry Farm. They are using the said land also for agriculture. The land owned by S/Shri Rattan Singh, Amar Singh, Labh Singh, Hukam Singh, Ram Singh, Harnam Singh, Kartar Singh, Sarup Singh, Smt. Achhro, Gurbachan Singh, whose names are mentioned in the application, adjoins the land of the applicant", 11. No doubt, the Revenue authorities can give an authentic version about the quality of land. Under the land Revenue Manual, the Revenue authorities are expected to make periodical inspection of the land and, therefore, they are supposed to be well acquainted with the qualities of land. Tehsildar in his certificate dt. 26th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch may give the clue about the date of establishment of the cinema and the industrial area. Without any material he observed that these were not there in the year 1954. What we mean to say is that the infirmity which the Commissioner pointed out in the certificate of the Tehsildar, continued to exist in the order of the Commissioner himself. On the one hand he wants to reject the version of the Tehsildar on the ground that he has not stated the date of establishment of industries and the cinema hall and, on the other hand, he himself does not state the date of establishment of the industries and the cinema. He rather, wrongly quoted the certificate of the Tehsildar in para 6 of his order that the Tehsildar stated that the cinema hall, industries and other residential houses had come up after 1949. In our view the certificate of Tehsildar is not of general nature and it does not suffer from vagueness. From the certificate of Tehsildar, it is clear that land in dispute was very fertile and it having been superior land, could not be compared with the land of village Jodhewal, which was far inferior in comparison. So, the order of the ITO cannot be said to be erroneous on those count a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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