Itta/493/2014 Of Commissioner Of Income Tax-Iii v. Sri O.v.ramana Reddy

HIGH COURT OF JUDICATURE AT HYDERABADFOR THE STATE OF TELANGANA AND THE STATE OF ANDHRAPRADESH PRESENT THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTISENGUPTA AND THE HON’BLE SRI JUSTICE M.S. RAMACHANDRA RAO I.T.T.A. NO.493 OF 2014 DATED:30.7.2014 Between: Commissioner of Income Tax-IIII.T. Towers, A.C. GuardsHyderabad … Appellant And O.V. Ramana Reddy (HUF) … Respondent THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTISENGUPTA AND THE HON’BLE SRI JUSTICE M.S. RAMACHANDRA RAO I.T.T.A. NO.493 OF 2014 JUDGMENT:(per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta) This appeal is sought to be preferred and admitted on thefollowing suggested questions of law, against the impugned judgmentof the learned Tribunal dated 25.10.2013 in relation to assessmentyear 2008-2009. i.In the facts and circumstances of the case, whether theHon’ble Tribunal is correct in law in upholding the ratesadopted by the learned Commissioner of Income Tax[Appeals] to determine the capital gains, when the AssessingOfficer computed the capital gains adopting the fair marketvalue obtained from the Sub-Registrar Office for determiningthe cost of acquisition? ii.In the facts and in the circumstances of the case whetherthe order of the Hon’ble ITAT is arbitrary and perverse andhence liable to be set aside? The learned Tribunal upon consideration of the materialreached the valuation of the property. By doing so, the Tribunalobserved as follows: “Therefore, considering the fact that the assessee’s propertyis situated at a prime location in Banjara Hills, which is just half akilometer away from Masab Tank, the Fair Market Value adopted bythe CIT(A) at Rs.900 per sq. yard for the land and Rs.100 per sq. ftfor the built up area appears to be reasonable and cannot be calledinto question.” Since the decision arrived at was based not on unacceptable material, we do not see any reason to interfere with the same. The appeal is accordingly dismissed. There will be no order as to costs. ________________________ K.J. SENGUPTA, CJ _______________________ M.S. RAMACHANDRA RAO, J 30.7.2014bnr