9911796707
TMI Blog2021 (8) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... in confirming the Long Term Capital Gain u/sec. 45(2) on Sale of Land at Rs. 95,12,524/- as against Rs. 16,22,135/-computed by the appellant. The said C.I.T. - (A) erred in not allowing indexed cost of improvement of land incurred in A.Y. 1993-94 amounting to Rs. 1,83,230/- claimed U/sec 48 ignoring the fact that the same were never claimed against agricultural income and was towards cost of improvement of the said land. 1.3 On the facts and circumstances of the case, the said C.I.T.-(A) erred in computing notional sale consideration at Rs. 2,28,16,029/- u/sec 45(2) as against Rs. 1,61,84,861/- ignoring the fact that the saleable area of the said land was 32,049.23 sq. meters, and not 44,314 sq. meters when the business income has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luka Umergaon, Distt. Valsad, Gujarat into Non-agricultural land as stock-in-trade after obtaining necessary approvals from the competent authorities and carried out plotting for industrial use. The assessee has thus derived income from Business and Long Term Capital Gains. In this regard, ld. AO noted that assessee has stated that the HUF which was holding the land as a capital asset has converted the land into its stock-in-trade on 01/07/2012, with a view to develop the same by dividing the same into different plots and selling the said plots and engaging into Real Estate Business from the said date. 3.2. Assessee also stated that it got the market value report of the said Non-Agricultural land from an approved valuer who has estimated t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as of the opinion that roads of loading and unloading area is integral and inseparable part of the saleable plots. 4. The ld. CIT(A) also upheld the view of the ld. AO. Now, assessee has raised the ground as above. 5. We have heard both the parties and perused the records. We find that upon conversion of agricultural land into Non-agricultural land, the act mandates that fair market value of the same should be taken for the purpose of computation of capital gain on the date of conversion. In other words, stock-in-trade has to be valued. The assessee by way of this ground wishes to claim long term capital gain only with reference to saleable plot. Now, it is admitted that assessee will be selling only the plots. Roads and other areas will ..... X X X X Extracts X X X X X X X X Extracts X X X X
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