Capital gains date of acquisition turned on 1971 possession and payment, preserving 1 April 1981 valuation.

For capital gains computation, the Tribunal treated the plot as acquired in 1971 because initial consideration was paid then, possession was given in that year, and later society records and cash book entries supported the original transaction. The subsequent patta, issued later in lieu of earlier documents and the 1971 sale, did not alter the date of acquisition. On that basis, fair market value as on 1 April 1981 was the correct valuation date, not the later patta date of 27 June 1990.

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Issues: Whether the plot was acquired in 1971 or on 27 June 1990 for the purpose of computing capital gains, and whether the fair market value as on 1 April 1981 or the later date of patta issuance was to be adopted.

Analysis: The Tribunal found that the assessee had paid the initial consideration in 1971 and further amounts towards conversion and development charges thereafter, supported by the society's records and cash book entries. The possession had been given in 1971, and the later patta expressly recorded that it was issued in lieu of the earlier documents and sale made in 1971. On these facts, the later issue of patta did not change the date of acquisition. The computation of capital gains was therefore required to proceed on the basis of the fair market value as on 1 April 1981, as adopted by the assessee, rather than on the basis of 27 June 1990.

Conclusion: The assessee's date of acquisition was held to be 1971, and the computation of capital gains on the basis of fair market value as on 1 April 1981 was upheld.

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