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2014 (1) TMI 101 - AT - Income TaxCost of acquisition - Held that:- The assessee has acquired the property on on account of succession, the cost of acquisition would get restricted only to that in the hands of his ancestors, which excludes the cost of any encumbrance created by them - Following Salay Mohamad Ibrahim Sait v. ITO [1994 (5) TMI 18 - KERALA High Court] - Encumbrance created by the earlier owner was clearly not a part of such of cost of acquisition - The cost of improvement includes - The expenditure incurred in making any additions or alterations to the capital asset that was originally acquired by the previous owner and if the previous owner had mortgaged the property and the assessee and his co-owners cleared off the mortgage so created, it could not be said that they incurred any expenditure by way of effecting any improvement to the capital asset that was originally purchased by the previous owner - Decided against assessee. Applicability of section 50C - Held that:- The properties got registered only after 01/04/2003 i.e. after the provisions of section 50C were brought on the statute - The contention that the land has been sold away by way of an agreement of sale in 2000 and 2001 itself, has not been substantiated by the assessee with enough evidence and documents - It cannot be concluded that the agreement had actually acted upon - Decided against assessee.
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