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2015 (6) TMI 844 - AT - Income TaxComputation of capital gains - co-owners - Addition on account of cost of improvement - CIT(A) deleted addition - Held that:- On the transfer of his 1/5th share in the total area of land, what the assessee actually transferred was not only the lesser area under his exclusive ownership, but also the common area on which he had joint ownership rights. Sale consideration amounting to ₹ 27 crore received by the assessee is in respect of higher area of 44 Bighas, 15 Biswas and 4 Biswans. It is not the case of the Revenue that the assessee transferred his entire 1/5th share in the agricultural land and received ₹ 27 crore in respect of lesser area and some other amount of consideration for the remaining area which was commonly used. When there is a sale of the assessee’s 1/5th share in total land area covering both the exclusive ownership/possession as well as the joint ownership/possession, the cost should also be taken for the both, including that of joint ownership. It is impermissible to take full value of consideration for the higher area and cost of acquisition for the lesser area. Insofar as the mention of a lesser area in the Registered valuer’s report and Court decree is concerned, we find the Registered sale deed to be a more authentic document evidencing the details of the property transferred with the relevant khasra nos. etc. We, therefore, prefer to go with the Registered sale deed in preference to the other documents in so far as the question of determining the assessee’s share in land is concerned. If we so proceed by taking the higher area of the land transferred, the assessee’s claim for deduction for increase in the indexed cost of acquisition by a further sum of ₹ 38.76 lac merits acceptance. We countenance the impugned order on this issue - Decided against revenue.
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