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2024 (3) TMI 472 - ITAT AHMEDABADCapital gain - STCG - compensation on the compulsory acquisition of capital assets - deduction the cost of acquisition of the land in dispute along with indexation - CIT(A) contended that it has shown the impugned assets being land and building as part of the block of asset and claimed the depreciation thereon, therefore, the written down value should be allowed as a deduction against the compensation received - AR contended that even the compensation received by the assessee towards the land is excluded from the income shown by the assessee under the head short term capital gain, then also the assessee is entitled for the deduction the cost of acquisition of the land in dispute along with indexation HELD THAT:- From the preceding discussion, we note a defect in the order of ld. CIT(A) in so far as the benefit of cost of acquisition with respect to the land has not been provided as mandated under the provisions of law. As such, we note that the ld. CIT(A) on the one hand is denying the benefit of a deduction representing the written down value and on the other hand, the ld. CIT(A) has not given the benefit of acquisition of land along with the indexation cost. Thus, we are of the view that such an order passed by the CIT(A) is not based on the provisions of law. Thus we hold that the order passed by ld. CIT(A) is not sustainable and accordingly, we direct the Assessing Officer to delete the addition made by him. Hence, the grounds of appeal of the assessee are hereby allowed.
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