Assessee transferred 7,150 shares of a private limited company-He claimed indexed cost.  Assessing Officer held that  while calculating cost of acquisition, value of land was to be excluded as land was not a part of sale consideration of shares. CIT(A) deleted the addition. On appeal  the Tribunal held that the lease hold interest in land of the company and is capable of valuation and has to be included in the valuation. On appeal the Court held that   since on date of sale of shares, lease period of beyond 20 years was still left with company, value of leasehold land could not be excluded for calculating fair market value of shares of company.Further, fair market value, and not book value, of an asset was relevant for determining cost of acquisition as envisaged under section 55(2)(b)(ii) for determining capital gain under section 45. Therefore, for purpose of computation of capital gain, fair market value was to be determined and not value of shares, valuation of shares was to be made under rule 1D of Wealth Tax Rules.  (AY. 1998-99)