Determination of fair market value of leasehold land as on 01.04. ...

High Court Adjusts Leasehold Land Valuation for Capital Gains, Overrules Tribunal's Lower Assessment.

September 23, 2024

Case Laws Income Tax HC

Determination of fair market value of leasehold land as on 01.04.1981 for computing long-term capital gains. The Tribunal, considering the valuation report, valued the leasehold rights at Rs. 800/- per square yard instead of Rs. 1,200/- considered by the valuer. The High Court held that the Tribunal erred in estimating the value at Rs. 800/- per square yard, as the registered valuer had already deducted the capitalized value of lease rent from the total fair market value to arrive at Rs. 57,75,000/- as the valuation after considering the leasehold rights. The Court ruled that Section 55(2)(a)(ii) would not apply, and the cost of acquisition should be determined u/s 48 as on 01.04.1981, considering the leasehold rights. The decision went against the revenue authorities.

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Determination of fair market value of leasehold land as on 01.04. ...

High Court Adjusts Leasehold Land Valuation for Capital Gains, Overrules Tribunal's Lower Assessment.

September 23, 2024

Case Laws Income Tax HC

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