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2017 (2) TMI 592 - AT - Income TaxDisallowance in respect of cost of improvement while arriving at Long Term Capital Gain - Held that:- The entire claim of the assessee is based on the various clauses in the sale deed and the copy of the ledger account of Rama Realty. As mentioned elsewhere, the sale deed was already executed without the assessee carrying out any work as mentioned in the sale deed. The assessee may have paid ₹ 45.90 lacs to the contractor in the subsequent year but then the payment is not supported by any actual work done by M/s. Rama Realty. To this extent, in our considered opinion, the same cannot be considered towards cost of improvement. We, accordingly, confirm the disallowance to the extent of ₹ 45.90 lacs. So far as the balance of ₹ 99.10 lacs is concerned, a perusal of the paper book shows that the assessee has offered the same as remission/cessation of liability in A.Y. 2013-14 and has paid the taxes accordingly. Since, the assessee has offered this amount as its income in subsequent year if the disallowance is sustained during the year under consideration, it would amount to double taxation of the same amount. Therefore, in our understanding of the fact, this disallowance cannot be sustained. We, accordingly, modify the findings of the ld. CIT(A) and direct the A.O. to confirm the addition of ₹ 45.90 lacs and delete the addition of ₹ 99.10 lacs. - Decided in partly in favour of assessee
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