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2004 (4) TMI 63 - HC - Income TaxCapital gains tax - By entering into a deed of cancellation, the assessee relinquished the right, which he acquired under the first agreement, accepting a sum of Rs. 6,00,000 from the owner of the land - whether the amount of Rs. 6,00,000 received by the assessee from the vendor cannot be treated as capital gains in the hands of the assessee - With regard to the contention that there was no cost of acquisition incurred by the assessee for obtaining the rights under the agreement, and consequently there could be no capital gains assessable, it is to be noted that at the time of agreement of sale the assessee paid Rs. 40,000. - Only by paying the said amount the assessee acquired the right to get the sale deed executed in his favour. - Now that we have come to the conclusion that the assessee incurred Rs. 40,000 for acquiring the right to acquire the sale deed, the contention of assessee that there is no cost of acquisition and so there could be no assessment of capital gain on the transfer of the capital asset falls to the ground.
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