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2014 (1) TMI 303 - AT - Income TaxAmount paid to contractors as cost of improvement of property not considered while capital gain computation u/s 55 of the Act - Held that:- The assessee made payments to sub-contractors which is not in dispute - The assessee also deducted TDS on such payments to contractors is also not in dispute - the assessee himself carried out the unfinished portion of the building without which he could not have used that property as dubbing and recording theatre - the assessee has sold the property, i.e., dubbing and recording theatre - The assessee has paid amounts to contractors deducting TDS – thus, the assessee cannot be denied cost of improvement for the purpose of computing capital gains simply because the contractors to whom the payments were made did not carry out the work – AO directed to re-compute the capital gain as cost of improvement of the asset – Decided in favour of Assessee.
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