2003 (1) TMI 57

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....of acquisition had to be determined on the basis of the value as determined on the date of conversion of agricultural land into non-agricultural land, i.e., when the land became a capital asset?" The matter pertains to the assessment year 1971-72. The assessee is an individual. In the assessment proceedings under section 143(3), the Income-tax Officer, while computing the capital gain was of the opinion that the cost of the land in question to the previous owner worked out at Rs. 1.10 per sq. yd. was to be given deduction for computation of the capital gain made by the assessee in respect of which the land which was sold during the assessment year in question. In the assessment proceedings, the assessee, while computing the capital gains....

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...., these orders are in Instruction No. 90 which was issued on August 1, 1969, a copy of which is placed on record before us. Learned counsel for the Revenue has, during the proceedings, at our instance, after frantic efforts been able to trace out these relevant instructions which are the subject matter of the proceedings. The instructions issued by the Board on August 1, 1969, read as follows: "Section 48 of the Income-tax Act, 1961, prescribes the mode of computation of the income chargeable under the head 'Capital gain'. It, inter alia, allows a deduction for the cost of the acquisition of the capital asset concerned. A question has arisen as to how the 'cost of acquisition of the capital asset' should be determined for the purpose of ....