1988 (11) TMI 97

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.... gifted portion of the property which represents the 'cost of acquisition' referable to such gifted portion as on January 1, 1954?" (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that there was no case for enhancement of capital gains as proposed by the Income-tax Officer ?" Briefly stated, the relevant facts are that the assessee is an individual and the proceedings relate to the assessment year 1965-66. The assessee sold a plot of land admeasuring 3,125 sq. yards and a structure thereon during the previous year for a sum of Rs. 3,90,625. He computed the capital gain on this transaction at Rs. 1,36,946 by estimating the market value of the property as on January 1, 1954, at Rs. 2,16,....

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....minal value. In support of the claim, it was pointed out that the property in question was purchased by his father on November 1, 1946, at a distress sale for a sum of Rs. 79,999, that the prices of land had substantially gone up during the period of 11 years between 1946 and 1957, and that, therefore, it was inconceivable that such a property would be sold for a paltry sum of Rs. 45,000 in the year 1957. The Appellate Assistant Commissioner accepted the assessee's claim that the fair market value of the property was required to be estimated as on November 1, 1954. However, accepting the Income-tax Officer's estimate of the fair market value, the Appellate Assistant Commissioner confirmed the computation of the capital gain at Rs. 2,40,071 ....