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2013 (9) TMI 527 - AT - Income TaxDetermination of Capital Gains - Determination of Fair Market Value - Deduction from FMV - cost of improvement - Held that:- The number of lifts is only toward adequate 'lift capacity', which would rather depend on the number of people residing in the building who would be ordinarily requiring that facility and, besides, the number of lifts would also stand to be determined by the carrying capacity of the lifts themselves. The same (number of lifts), thus, would not assume any significance of its own, and the increase, if any, in valuation of the house property on account of a higher number of such units would be marginal, and not in any case in linear proportion to the number of lifts. - no infirmity in the valuation adopted by the A.O. - Decided against the assessee. Deductibility of the sum of Rs. 35 lakhs claimed from the sale consideration of Rs. 175 lakhs of the residential flat under reference in computing the capital gains arising on its transfer during the year - Basis of deduction being that the same represents a condition precedent subject to which only the said property stands bequeathed to, among others, is of assessee - Held that:- the assessee has not been able to show of the impugned sum as representing a condition precedent, with the succession of rights being given effect to without the said payment having been made, with even the transfer deed not recognizing the interest of any party other than the legatees in the subject property. - Decided against the assessee. Under section 48, only sums specified for being adjusted against the consideration accruing or arising on the transfer of a capital asset in computing the capital gains are, (i) expenditure incurred wholly and exclusively in connection with such transfer; (ii) the cost of acquisition of the asset and the cost of improvement thereto - Assessee's case as not maintainable both in law as well as on facts – Decided against the Assessee.
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