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2014 (12) TMI 192 - HC - Income TaxAmount of ₹ 12 lakhs deducted while computing LTCG – Determination of cost of acquisition - Whether amount paid by the assessee to the seller at the time of purchase of the property must be construed as a cost of acquisition of the asset so as to be deducted from the full value of consideration received by the assessee at the time when he had sold and transferred the property – Held that:- The Tribunal was rightly of the view that after noting Section 48 of the Act, which relates to the aspect of capital gain, was of the view that the sale deeds by which, the assessee had sold the property, does not mention the fact about the sale of furniture and fixtures and other fittings - The Tribunal also rejected the basis on which, the assessee has claimed deduction at ₹ 12 lakhs on the ground that the description of items indicates that the same consisted of removable wood work - the furniture and fixtures are personal effects which have been specifically excluded from the definition of capital asset as contained in Section 2(14) of the Act. The Authorities below was of the view that the assessee had acquired the property by way of four sale deeds, each of ₹ 4.50 lakhs, the total of which, was ₹ 18 lakhs - there was no agreement, nor any registered deed in that regard - The AO was right in noting that there was no mention in the sale deeds of ₹ 18 lakhs about purchase of the furniture and fixtures by way of a separate agreement for ₹ 12 lakhs - the deed of 2008 also does not give the inventory of the furniture and fixtures as sold in the year 2008, which aspect has been conceded by the assessee at the time of the arguments. Most of the items which are said to have been acquired are primarily “personal effects” which are excluded from the definition of capital asset u/s 2(14) of the Act if they are meant for personal use - ₹ 12 lakhs was for all the fixtures and fittings including furniture - the breakup of ₹ 12 lakhs was not given - the Authorities below were right in disallowing ₹ 12 lakhs for the purpose of computation of the capital gain – as such no substantial question of lawarises for consideration – Decided against assessee.
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