Cost of construction based on actual expenditure is to be considered in computation of capital gain

Last updated: 25 April 2012

Court :
Income Tax Appeallate Tribunal

Brief :
The facts mentioned in the assessment order are that the return declaring total income of Rs. 51,27,967/- was filed on 31.10.2002. In the course of assessment, it was inter-alia found that the assessee sold its property situated at B-19, Okhla Industrial Area, Phase-I, New Delhi, for a consideration of Rs. 1,06,37,050/-. After reducing the cost of acquisition, capital gain was worked out at Rs. 51,27,967/-. Original assessment u/s 143(3) was completed on 29.3.2005 at a total income of Rs. 1,08,01,894/-, which included long-term capital gain (‘LTCG’ for short) of Rs. 89,48,917/-. The income of the assessee was revised to Rs. 82,82,648/- on giving effect to the order of the CIT(Appeals). In the course of assessment proceedings, the valuation of the property was referred to the District Valuation Officer. His report was not received till the completion of original assessment order and it was received subsequently. He valued the property at Rs. 6,54,09,300/- as on 31.3.2002, being 50% of sale consideration.

Citation :
Assistant Commissioner of Income-tax, Circle 23(1),New Delhi.(Appellant) Vs.National Cooperative Consumers Federation of India Ltd., 5th floor,Deepali Building, 92, Nehru Place,New Delhi.PAN: AAAAN0109N (Respondent)ITA No.5572 (Del)/2010 Assessment year: 2002-03 National Cooperative Consumers Federation of India Ltd., New Delhi.(Appellant)Vs. Assistant Commissioner of Income tax, Circle 23(1), New Delhi. (Respondent)