Law: Income Tax Act, 1961

Section: 45

(a) Income-tax----Capital gains---Levy of tax---Condition precedent---Property transferred must be a capital asset as on date of transfer---Not necessary that property should have been a capital asset on date of its acquisition by assessee---Indian Income Tax Act, 1961; S.45. (b) Income-tax--- ----Capital gains---Computation of capital gains---Cost of acquisition--¬Agricultural lands acquired by Karta of H.U.F., later converted into housing sites---Subsequently assessee receiving some house sites on partition of H.U.F. of which he was a member---Sale of building sites by assessee--¬Capital gains to be computed under provisions of Ss. 45, 48 & 55---Principle laid down by Supreme Court in Bai Shiripbai Kookas case is not applicable---Indian Income Tax Act, 1961, Ss.45, 48 & 55. The only condition which must be satisfied in order to attract the charge to tax under section 45 of the Income Tax Act, 1961, is that the property transferred must be a capital asset on the date of transfer and it is not necessary that it should have been a capital asset also on the date of its acquisition by the assessee. The assessee was a divided member of a Hindu undivided family. The Karta of the Hindu undivided family purchased certain lands prior to 1954. They were then agricultural lands. These agricultural lands were converted into house sites during the assessment year 1961-62. For the purpose of wealth tax for that year, the value offered was Rs.2,341 per ground. The family was partitioned and part of those house sites fell to the share of the assessee. In the accounting year relating to 1972-73, the assessee sold five grounds and 1320 sq. ft. or a sum of Rs.55,500. For the purpose of computing the capital gains, the assessee adopted the value of these lands on January 1, 1054, at Rs.6,500 per ground on the basis of a valuers report. The Income-tax Officer determined the value as on January 1, 1954, at Rs.2,000 per ground and accordingly determined the capital gains. In the year 1973-74, the assessee old 7 grounds and 800 sq. ft. for a total sum of Rs.73,334. In that assessment year also, the Income-tax Officer adopted the value as on January 1, 1954, at Rs.2,000 per…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492