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2010 (11) TMI 677 - AT - Income TaxCost of improvement of capital assets - Estimation of cost - section 48(ii)- Held that:- the amount incurred by the assessee along with co-owner for conversion of agricultural land into plots seems to be on high side and therefore considering totality of facts and the circumstances of the case and in the absence of proper evidence,estimate the expenditure incurred by the assessee jointly with the co-owner for conversion of plots from agricultural land at Rs.12 lakhs as against Rs.22,19,900 claimed by the assessee - Therefore, the assessee appeal is allowed in part. Payment to the previous owners for securing uninterrupted right over the land - Held that:- the assessee paid additional consideration to the previous owners for acquiring uninterrupted right over the said land for which the assessee produced copies of receipts issued by the sons of previous owners and they have admitted that their fathers have received full sale consideration from the purchasers and paid the said amount in view of their poor financial condition - the assessee has paid Rs.4,50,000 to the sons of the previous owners towards improving the title of the land and to avoid further litigation - Thus decided in favour of assessee. Stamp duty and Registration fee - As per the terms and conditions mentioned in the copies of the sale agreements, the vendee had to bear the stamp duty and registration fees. Hence, we are not inclined to accept the contention of the assessee that he has borne the stamp duty and registration fees while selling the lands to different persons - Decided against of assessee. Deduction on brokerage - It is common and general practice to incur some expenditure on account of brokerage for sale of plots - To meet the ends of justice, it ia estimate that the expenditure on account of brokerage at 2% of the total sale consideration in the absence of any supporting evidence of such expenditure claimed. Hence, assessee appeal is allowed in part.
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