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2014 (7) TMI 555 - AT - Income TaxComputation of LTCG - Banakhat cancellation charges – Cost of acquisition of land – cost of improvement - Held that:- The decision in Parshwanath Farm Versus ACIT, Cir. 7, Ahmedabad [2014 (7) TMI 367 - ITAT AHMEDABAD] followed – there is no obligation on the part of the assessee to pay any compensation as per the banakhat agreement, and it is not the assessee who has opted out from the banakhat agreement and it is the buyer on whose behest the banakhat cancellation agreement was executed - AO has rightly held that these payments of banakhat cancellation charges cannot be construed as payment made to retain the lands and in any case, it cannot be attributable to the cost of transfer of land, which has been added in the computation of capital gain in total acquisition cost. – Decided against Assessee.
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