Leasehold right allotted against right of agricultural land cannot be considered as agricultural land

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.

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