Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (4) TMI 433 - AT - Income TaxComputation of capital gain - actual cost incurred by the assessee for the acquisition of the property has to be taken for computing capital gain and part of it cannot be disallowed on the basis that construction is demolished before sale as held by CIT(A) - Held that:- Considerable cogency in the finding of the CIT(A) wherein held that the demolition of building was a part of the process of land transaction and, hence, the cost of property was the actual cost incurred by the assessee for purchasing the land along with the building. Therefore, he held that the assessee has claimed cost of acquisition correctly which is to be allowed in full. Ld. CIT(A) also noted that there is no authentic evidence that sale of Malwa was only for ₹ 1,30,000/- and noted that in this behalf assessee’s own affidavit is self serving and therefore, observed that in the absence of any authentic evidence, he held that sale consideration for Malwa requires to be estimated and accordingly, estimated the said consideration at ₹ 2.75 lacs which should be added to the consideration disclosed ₹ 24 lacs. We find force in the Ld. CIT(A)’s computation which read Total sale consideration [As per registered deed dated 3.2.07 + sale consideration of ‘Malwa’ (Rs. 24,00,000 + ₹ 2,75,000/-) ₹ 26,75,000/- LESS Cost of acquisition as per registered deed dated 17.5.06 ₹ 23,70,020/- = SHORT TERM CAPITAL GAIN ₹ 3,04,980/- - Decided against revenue.
|