TaxTMI 
TaxTMI 
2015 (10) TMI 1401
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....) in respect of the following four issues : a) Fair Market Value as on 1.4.1981/-; b) Indexation of cost of acquisition; c) Deduction under section 54 of the Income Tax Act, 1961 (the Act)-; d) Deduction u/s 54F of the Act. 3. We have heard the ld. DR and perused the record. All the disputes listed above relate to the computation of "Long Term Capital Gains" ("LTCG") in the hands of the assessee. During the year under consideration, the assessee sold a property for a total consideration of Rs. 1.56 crores and worked out Capital Gain at Rs. 87,78,125/-. The assessee had deposited a sum of Rs. 1,00,00,000/- under the capital gain account scheme. The AO however computed the LTCG at Rs. 1.48 crores by rejecting the computation made by the ....
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....nd was open from two sides being the corner plot and facing the park. Accordingly it could have fetched much higher price than the socalled government rate of Rs. 3120 per sq. yard for leasehold land. It is also argued that the plot of the appellant is a freehold land whereas the instances cited are that leasehold land of the government. Obviously a freehold land will cost higher than that of leasehold, I find that after pointing out a price range of Rs. 4000- 6000 per sq. yard, the valuer has adopted the higher value being Rs. 5750 per sq yard. It has been rightly pointed out by the appellant that the government rate was for leasehold land. Considering that the appellant had freehold land and it was a corner plot facing the park it will be....
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.... from 1.4.1981 onwards. Since, the ld. CIT(A) has followed the decision rendered by the Special Bench of Tribunal referred supra, we do not find any infirmity in the order passed by him on this issue. 7. The next issue relates to the deduction claimed u/s 54 of the Act. The assessee claimed that the property sold by him consisted of plot and a building thereon and accordingly claimed deduction u/s 54 of the Act. However, the AO held that the assessee has sold only the plot, since the possession letter given by the assessee to the purchaser mentioned that the assessee has handed over physical and vacant possession of freehold residential plot. It is pertinent to note that the said deduction u/s 54 is available only in respect of capital gai....