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2021 (5) TMI 587 - AT - Income TaxRectification of mistake u/s 254 - applicability of provisions of Sec.50 in respect of transaction involving transfer of an immoveable property by the assessee has been dismissed by the bench observing that the assessee could not demonstrate that deprecation was never claimed against the said property since its acquisition - AR submitted that during hearing various evidences were submitted in support of the fact that depreciation was never claimed on immoveable property - HELD THAT:- A conclusion was reached that the assessee could not establish that the property was not part of block of asset and depreciation against the same was never claimed in earlier years. The perusal of record would reveal that the assessee had purchased the property on 31/12/2010 and the question of claiming depreciation would arise in AYs 2011-12 onwards. However, except for computation of AY 2013-14, no computation of income for AYs 2011-12 & 2012-13 was placed on record. Similar was the observation of Ld. CIT(A) in the impugned order. Hence, the observation of the bench in para-4 of the order. Therefore, we do not find any mistake in the order, on this issue. Allowance of property tax and BEST deposit (electricity) - The expenditure was capitalized or not, would not be much germane to decide the deductibility of such expenditure while computing capital gains since the deduction would be available only as per computational mechanism provided in law. These two expenditures could not be said to be part of cost of acquisition or improvement. The issue of deductibility of other expenditure has already been restored back on the facts of the case since the assessee had failed to substantiate the same. No error in the order in terms of Section 254(2). The application stands dismissed.
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