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Informative

ITAT fixes FMV of Land at ₹60/sq.m for Capital Gain Calculation, directs AO to Verify Deduction u/s 54

Update / Judgement Date

24 Aug 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Income TaxRERA & Property Act

The ITAT has fixed the "FMV of land at ₹60/sqm for a capital gain calculation" and has directed the AO to "verify a deduction under Section 54." The tribunal's decision clarifies a key aspect of tax law. The ruling reinforces the principle that a person can be taxed on a profit if it is a bona fide profit. The court's decision is a crucial reminder to all that they must be diligent in their dealings.