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2015 (4) TMI 10 - HC - Income TaxComputation of capital gain - Reduction of Cost of improvement - payment of compensation to tenant - AO treating the same as not an expense incurred in connection with the transfer of the capital asset in question but payments made with a motive to avoid taxes - Held that:- The provisions of sec.40A(2)(b) cannot be made applicable on a transaction claimed as deduction against capital gain. Revenue did not produce any material to controvert the findings of fact recorded. Whether the transaction could be termed as dubious or not? would essentially require the exercise of fact finding inquiry. The material appears to have been re-appreciated by the C.I.T. (Appeals) and the finding of fact was recorded that the transaction of payment of compensation was genuine and disallowance was not proper. When the Revenue did not produce any material to controvert the said findings of fact before the Tribunal and if the Tribunal has confirmed the said finding, it cannot be said that such finding of fact is perverse, as sought to be canvassed nor it can be said that any substantial question of law would arise, as sought to be canvassed on behalf of the Revenue. - Decided against revenue.
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