02 January 2016
Hello sir/madam, I have a land 60% of which is given for Developer for construction of Flats and consideration for which i got 10 out of 20 Flats. My query is what is the amount of cost of consideration for capital gain? 1) Cost or 2) Market value of Flats ? or 3) Cost of Construction of Flats ?
03 January 2016
The Bangalore tribunal have decided in a case of Dec 2014 that consideration would be Cost of construction of flats ( Income Tax Officer Versus Sri. NS. Nagaraj, Kodandarama Nilaya). In another case Charnjit Singh Atwal, Chandigarh Tribunal has decided a similar case on the basis of Market value of flats. . Now it is upto you to decide which decision to be followed.
CAclubindia
