TMI Blog1992 (12) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... ut of its order dated July 30, 1980, in respect of the assessment year 1971-72 : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the capital gain arising from the sale of land has to be treated as long-term capital gain ? " The brief facts of the case are that the assessee purchased a plot of land on March 26, 1962, for a sum of Rs. 4,650 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... two years from the date of completion of the bungalow in the shape it was sold and the capital gains were taken as short-term capital gains. An appeal was preferred against the initial assessment made which was set aside by the learned Appellate Assistant Commissioner for recomputation of capital gains to find out the value of the property as it existed at the time it was sold in June, 1970. The c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hould be recomputed on the basis of full and fair consideration of the property at a figure of Rs. 1,30,000 which was the sale consideration as mentioned in the sale deed dated August 4, 1970. The contention that the gains are long-term capital gains and not short-term capital gains was rejected by the Commissioner of Income-tax (Appeals). Against this order, the assessee challenged the order be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istence after the building is constructed thereon and there cannot be any bifurcation of the price in respect of a composite item of a property which has been sold as one item. Mr. Ranka has placed reliance on the decision of the Hon'ble Supreme Court given in the case of CIT v. Alps Theatre [1967] 65 ITR 377. Land is a capital asset in terms of section 2(14) of the Act and, in accordance with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he other it is a long-term capital gain as in the present case and, in such a situation, the benefit to the assessee cannot be denied in respect of the gain arising from the sale of an asset which could be considered as a long term capital gain. Even for the purpose of value, the valuer and the Department have taken the value of the land and superstructure thereon separately ; therefore, we are of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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