O.P. Garg, Judicial Member - (1.) THIS appeal has been preferred by the assessee against the order dated 1-5-1981 of the AAC.
(2.) 1977-78 is the assessment year concerned. Financial year is the previous year. The assessee is an individual. The assessment was completed by the ITO as per order dated 5-11-1979 determining total income at Rs. 64,410, as rounded off, as against declared income of. Rs. 42,110. During the previous year under consideration, the assessee sold for Rs. 70,000 a plot of land, namely, plot No. 91, Block 5, Greater Kailash, New Delhi. Cost of acquisition of the said plot was Rs. 6,600. In addition, there had been some cost of improvement also. The ITO took such cost of improvement at Rs. 3,470 for purpose of computation under Section 48 of the Income-tax Act, 1961 ('the Act'). The ITO, however, did not accept the assessee's contention to the effect that an expenditure of Rs. 2,869 had been incurred in connection with the transfer of the said plot. Under the circumstance, the ITO worked out gross capital gains at Rs. 59,930 instead of at Rs. 57,060 as claimed by the assessee. Further, the ITO denied to the assessee special deduction as admissible under Section 80T of the Act, as in the ITO's opinion said transfer related to a short-term capital asset, namely, a capital asset that had been held by the assessee for a period of less than 60 months. In this connection, the ITO based his finding on the fact that registered conveyance in respect of the plot in question has been executed in the assessee's favour only on 25-4-1973.
(3.) THE assessee went in appeal to the AAC. THE AAC reworked the computation under Section 48 and allowed the assessee a deduction from the sale proceeds of a further amount of Rs. 2,140. THE AAC, however, confirmed the ITO's finding that the asset in question was not a long-term capital asset.;