Case Law Analysis
|Income Tax Appellate Tribunal
Section 50C IT Act | Cost of Acquisition for LTCG Must Cover Entire Land Parcel Before Conversion, Not Just Sold Portion : ITAT Jabalpur
The ITAT Jabalpur ruled that when land is partially sold after conversion, the cost of acquisition for long-term capital gains must be calculated on the entire original parcel, not just the portion sold. This prevents artificial inflation of gains and ensures fair valuation under Section 50C, directly impacting landowners and developers who subdivide and sell plots.