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TMI Blog2024 (3) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... sons were having shares in M/s. Jyoti Pvt. Ltd. Thus, the assessee was one of the shareholders having 21000 shares in the said company. During the financial year of 1997-98, the assessee had transferred/sold 7150 shares in the said company to M/s. Bharat Hotels Ltd., New Delhi for a consideration of rupees ten crores, though, as on 01.04.1981, the assessee had taken the indexed cost of these shares at Rs.14,48,59,000/-. However, in the return filed by the assessee on 08.03.1999, the assessee had declared a total income of Rs.16,89,477/-, i.e., Rs.12,000/- under the head salary and Rs.16,77,477/- as income from other sources. There was a note appended to the computation of income to the effect that the assessee had sold his shares in M/s. J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , directed to adopt the valuation report submitted by the assessee during the assessment proceedings resulting in no capital gain. 4. Against the said order, the revenue went in appeal before the Income Tax Appellate Tribunal, Delhi Benches "D", New Delhi and the learned Tribunal vide order dated 24.01.2022, while dismissing the appeal, held that reopening of the assessment case of assessee to be not in accordance with law. The learned Tribunal also allowed the Cross Objections filed by the assessee. 5. Against the said order, the Principal Commissioner of Income Tax, J&K has filed the present appeal. 6. The stand of appellant-revenue is that while calculating the cost of acquisition, the value of land measuring 225.85 kanals was to be e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly hotel building along with leasehold interest on the land on which the hotel building stood. M/s. Jyoti Private Limited had acquired the rights in the building and other superstructures when the same were purchased by the Company from its owner Shri Vikramaditya Singh vide Relinquishment Deed Dated 21.03.1973. However, the land measuring 225 kanals 17 Marlas, over which the building stood, was acquired by the Company from its owner Shri Vikramaditya Singh vide Lease Deed dated 21.03.1973 for a period of 40 years because due to the restrictions then prevailing in the State of J&K, a Company being a non-state subject was prevented to own land in the State. Jyoti Private Limited is a Private Limited Company having only four shareholders, i.e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there was no capital gain on the transfer of shares as on 19.01.1998. 13. A perusal of the file reveals that on one hand the Assessing Officer computed the value of shares as per the breakup method, as approved method, after accepting the fair market value of building as per the report of the approved valuer, but excluded the value of land on the ground that the said land belongs to Vikramaditya Singh, whereas, on the other hand, the Assessing Officer in the case of Shri Vikramditya Singh though had made the assessment but did not include the value of land. Therefore, we are in agreement with the learned Tribunal that the action of Assessing Officer was apparently erroneous and unsustainable in law. Further, the CIT(A) has rightly deleted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Rule 1D of the Wealth Tax Rules. 15. We are also in agreement with the learned Tribunal that the lease hold interest in the land is an asset of the company and is capable of valuation; as such the same is to be included in the value of asset of M/s. Jyoti Private Limited so as to determine the fair market value of shares held by the assessee as well as other shareholders. 16. Since the order impugned is a well defined and reasoned order, as such we are not inclined to take a view other than the one taken by the learned Tribunal as we are of the opinion that in the present appeal no substantial question of law arises for our consideration out of the judgment rendered by the Income Tax Appellate Tribunal. The appeal is, accordingly, di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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