Case Law Details
Pyaribai K Jain Vs Addl. CIT (ITAT Mumbai)
Leasehold right allotted against right of agricultural land cannot be considered as agricultural land and, therefore, profit on transfer of such leasehold right was taxable under the head ‘capital gains’, however, Assessing Officer was not correct in not allowing cost of acquisition to assessee while computing long-term capital gain on transfer of leasehold rights in land. Accordingly ITAT directs AO to re-compute long-term capital gain.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal filed by the assessee is directed against the order of the CIT(A)-32, Mumbai dated 25-01-2017 and it pertains to AY 2007-08. The assessee has raised the following grounds of appeal:-
“ 1. In the facts and circumstances of the case and in law without prejudice to ground 5 above, the learned CIT(A) appeal erred in not holding that the entire consideration received of Rs.9,70,37,5007- is not taxable being enhanced consideration received on compulsory acquisition of agricultural land.
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