Shri Surendra Singh Thakur HUF, Burhanpur V. The Income Tax Officer, Burhanpur

ITA 532/IND/2010

• Counselvise Citation: [2011] 119 COUNSELVISE.COM (IT) 7141 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 17-08-2011
• Assessment Year: 2002-2003
• Appeal Filed On: 04-08-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ARUN DEWAN
• Assessee Lawyers: S S DESHPANDE
• Keywords: Cost of acquisition; Fair market value

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI R.C. SHARMA, ACCOUNTANT MEMBER ITA NO.532/IND/2010 A.Y. 2002-03 SURENDRA SINGH THAKUR HUF BURHANPUR PAN AATHS-9323K ... APPELLANT VS INCOME TAX OFFICER BURHANPUR .. RESPONDENT APPELLANT BY : SHRI S.S. DESHPANDE RESPONDENT BY : SHRI ARUN DEWAN DATE OF HEARING 1.12.2011 DATE OF PRONOUNCEMENT 20 .12.2011 O R D E R PER R.C. SHRMA, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DATED 18TH MARCH, 2010 FOR THE ASSESSMENT YEAR 2002 - 03. 2 2. THE ONLY GRIEVANCE OF THE ASSESSEE RELATES TO ASSESSING OFFICERS ACTION IN TAKING THE INDEX COST OF ACQUISITION AS ON 1.4.1981 INSTEAD OF 1.4.1991 AS SUGGESTED BY THE ASSESSEE. ON MERIT, THE ASSESSEE IS ALSO AGGRIEVED FOR TAKING THE FAIR MARKET VALUE BY THE ASSESSING OFFICER AT RS. 2/- AS ON 1.4.1981 FOR THE PURPOSE OF COMPUTATION OF CAPITAL GAINS. 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE HAS DECLARED TOTAL INCOME AT RS.1,26,820/-. THEREAFTER, ON THE BASIS OF INQUIRY IT WAS FOUND THAT THE ASSESSEE HAS EARNED CAPITAL GAINS ON THE SALE OF AGRICULTURAL LAND ACQUIRED ON PARTITION OF HIS HUF. THE ASSESSEE OFFERED LONG TERM CAPITAL LOSS OF RS. 49,305/- BY TAKING FAIR MARKET VALUE OF THE PROPERTY ACQUIRED ON PARTITION ON 3 16.10.1992. THE PLEA OF THE ASSESSEE WAS THAT AFTER THE DEATH OF KARTA OF THE HUF, THE HUF WAS PARTITIONED ON 6.10.1991. THEREFORE, FOR THE PURPOSE OF CALCULATING INDEXED COST OF ACQUISITION, HE ADOPTED FAIR MARKET VALUE AS ON 6.10.1992. HOWEVER, THE ASSESSING OFFICER HAS CALCULATED THE COST OF ACQUISITION OF SUCH PROPERTY BY TAKING THE FAIR MARKET VALUE AS ON 1.4.1981. FOR TAKING THE INDEX COST OF ACQUISITION, THE ASSESSING OFFICER HAS TAKEN THE FAIR MARKET VALUE AT RS. 2/- PER SQ.FT WHICH WAS AGITATED BY THE ASSESSEE BY PUTTING VARIOUS INSTANCES TO INDICATE THAT THE FAIR MARKET VALUE WAS MUCH HIGHER THAN THE VALUE TAKEN BY THE ASSESSING OFFICER AT RS. 2/- PER SQ.FT. WE FIND THAT THE PROPERTY OF THE HUF WAS ACQUIRED MUCH PRIOR TO 1.4.1981, THEREFORE, AS PER PROVISO TO 4 SECTION 49(1) THE COST OF ACQUISITION IS TO BE COMPUTED BY TAKING THE FAIR MARKET VALUE OF THE PROPERTY AS ON IST APRIL, 1981. ACCORDINGLY, WE CONFIRM THE ACTION OF THE LOWER AUTHORITIES FOR TAKING THE FAIR MARKET VALUE FOR THE PURPOSE OF INDEXING AS ON 1.4.1981. 4. SO FAR AS THE FAIR MARKET VALUE ADOPTED BY THE ASSESSING OFFICER AT RS.2/- PER SQ.FT. AS ON 1.4.1981 IS CONCERNED, NO COGENT MATERIAL WAS REFERRED BY THE ASSESSING OFFICER FOR TAKING FAIR MARKET VALUE ATRS. 2/- PER SQ. FT. THEREFORE, KEEPING IN VIEW THE VARIOUS INSTANCES QUOTED BY THE ASSESSEE IN RESPECT OF THE LAND SITUATED IN NEARBY AREAS, IT WOULD BE FAIR AND REASONABLE TO TAKE THE FAIR MARKET VALUE AT RS. 3/- PER SQ.FT. IN PLACE OF RS. 2/- PER SQ.FT. AS ON 1.4.1981 TAKEN BY THE ASSESSING OFFICER. ACCORDINGLY THE 5 ASSESSING OFFICER IS DIRECTED TO COMPUTE THE CAPITAL GAIN BY TAKING THE FAIR MARKET VALUE OF THE PROPERTY AS ON 1.4.1981 AT RS 3/- PER SQ.FT. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. SD SD (JOGINDER SINGH) (R.C. SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DECEMBER 20 , 2011 COPY TO APPELLANT,RESPONDENT,CIT, CIT(A), DR DN/-