TaxTMI 
TaxTMI 
2010 (2) TMI 1332
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....g the market value of land as on 01.04.1981 without appreciating the fact that provisions of section 55(2)(a)(ii) are applicable." The brief facts of the case are that the assessee is an individual and his main source of income is "income from other sources". During the relevant year, the assessee has shown capital gain on sale of land and building at plot no. 511B, Dadar, 21 Omkar CHS, vide agreement for sale dated 22-5-2003 for a consideration of Rs. 70 lakhs. The capital gain as per provisions of the Act was computed and the same was shown in the return. 3. On verification of the sale agreement, the AO observed that the land and structure with tenants sold by the assessee is leasehold land. The said land was transferred in the name of ....
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....to consideration the explanation of the assessee, did not find the same acceptable. He noted that the land sold along with structure is leasehold land and akin to tenancy rights in as much as in the instant case of the assessee sec. 55(2)(a)(ii) is clearly applicable. The AO further noted that due credit is necessary to be given in respect of cost of owners occupied premises of 1092.31 sq.ft. which has been valued at Rs. 7,10,001/- as on 1-4-1981. The AO noted that since it is a leasehold land the construction cost on 1-4-1981 could not be more than Rs. 300/- per sq. ft. and the value of occupied premises cannot be more than Rs. 3,27,693/-. Accordingly, he calculated the capital gain at Rs. 32,76,878/- against the capital gain shown by the ....