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2015 (5) TMI 1061 - AT - Income TaxDisallowance of indexed cost of improvement - Held that:- The Assessing Officer, after examining the bills and vouchers and other documents, came to a conclusion that the claim could not be accepted. The fact remains that the bills and vouchers were produced before the CIT(Appeals) and the same were sent to the Assessing Officer. The assessee’s claim was only a sum of ₹ 3,07,946/- as cost of improvement. Improvement can be made even to the farm land. It is not necessary that the improvements should be made only to the building. Suppose, the vacant land is low lying and it requires fencing, the assessee has to necessarily incur expenditure to keep the land to a marketable condition. Under normal circumstances, this Tribunal would have remitted back the matter to the file of the Assessing Officer for verification. Since what was claimed was only ₹ 3,07,946/-, this Tribunal is of the considered opinion that it may not be necessary to remit back the matter in view of the smallness of the amount claimed by the assessee. Accordingly, this Tribunal is of the considered opinion that the assessee would have spent ₹ 3,07,946/- as per the letter filed before the lower authorities with regard to improvements. Therefore, there is no justification in disallowing the claim of the assessee. Accordingly, the orders of the lower authorities are set aside and the Assessing Officer is directed to allow the claim of the assessee towards cost of improvements to the extent of ₹ 3,07,946/-. Computation of capital gain - whether the sale consideration disclosed in the sale deed has to be taken or the value adopted by the Sub- Registrar for registering the document has to be taken - Held that:- This Tribunal is of the considered opinion that for the purpose of granting deduction under Section 54F of the Act, the value disclosed in the sale deed has to be adopted rather than the value determined by the Sub-Registrar on the basis of guideline value. Actual sale consideration as reflected in the sale deed has to be adopted in the absence of any other material to indicate that the assessee has received any on-money over and above the amount disclosed in the sale deed. In this case, it is nobody’s case that the assessee received on-money over and above the sale consideration disclosed in the sale deed. Therefore, this Tribunal is of the considered opinion that the Assessing Officer has to adopt the actual sale consideration of ₹ 90 lakhs for the purpose of considering the claim of exemption under Section 54F of the Act. The orders of the lower authorities are set aside and the Assessing Officer is directed to adopt the actual sale consideration for the purpose of considering exemption under Section 54F of the Act.
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