Hi friends,
The assesssee acquired the property in 1941. for Cap gain purpose, he took value as on 01.04.1981.
Issue
The transfer took place in 2008. on the date of transfer, the property was commercial, hence the value as per commercial rates were taken as a Full value of consideration. But when it came to cost, he takes FMV as on 1.4.1981 taking it as a commercial property. When in actuality, the property in 1981 was a residential property.
He says that, since on date of transfer, the property is commercial, hence while taking COA as FMV on 1981, the valuation be done taking it as commercial property.., when in actuality, it is residential at that time.
What should be the COA., Whether as per commercial rates or residential rates??
Also, the lease deed contains a clause which says that the lessee 'may' with the consent of the lessor, build shop in the premises. Does this makes it a commercial property.??
Pls refer case law, if any!!!.. Thanks!
CAclubindia
