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2011 (1) TMI 1159 - HC - Income TaxLong-term capital gain - assessees entered into an agreement to purchase the immovable property and paid Rs. 1,00,000 as advance amount. It is the cost of acquisition. They filed a suit for specific performance of the agreement of sale. It is thereafter under an agreement entered into between them and the purchasers, they gave up their right to sue for specific performance in lieu of a payment of Rs. 7,50,000 – Held that:- amount received by them for giving up the right of specific performance i.e., to give up their right in a capital asset constitutes capital gains, they are entitled to deductions as per s. 48, both regarding the investment made as well as the expenditure incurred and only after such deduction the amount arrived at would be exigible to capital gains tax.
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