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2015 (7) TMI 977 - AT - Income TaxValuation of land - fair market value of the land - cost of improvement of ₹ 1,00,000 being declined in the computation of capital gains by the revenue - Held that:- In the light of Hon’ble Supreme Court’s judgment in the case of Mehraban & Ors [1997 (4) TMI 497 - Supreme Court Of India], a copy of which was filed before us as well, there is indeed no error in rejecting in valuation @ ₹ 70 per square yard adopted by the a.o. However, learned CIT(A) was in error to the extent that solatium is required to be treated as a part of the compensation, for income tax purposes, in the light of Hon’ble Gujarat High Court’s judgment in the case of Vadilal Soda Ice Factory Vs CIT [1970 (9) TMI 12 - GUJARAT High Court], and, therefore, as against valuation at ₹ 85 per square yard, he should have taken the same as at ₹ 110 per square yard as claimed by the assessee. As regards the cost of improvement, there is no dispute about the fact of the levelling having been done but the claim is declined only for want of evidences. In the case of expenses of this nature, i .e on levelling etc, it is not always possible to have third party evidences of expenses. The assessee is an individual and not a corporate. Keeping in view all these factors, and smallness of amount, we see no reasons to decline the claim. - Decided against Revenue.
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