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2010 (5) TMI 69 - HC - Income TaxCapital Gains – indexed cost of acquisition – cost of improvements - Receipt of an amount towards settlement – sale of property - It was agreed that out of a total consideration of Rs.15,76,05,316/- payable by the developer qua that property, Rs.4 Crores would be given to the appellant and remaining amount was to be paid to Reeta Wahi. - Receipt of this amount was treated as capital gain by the Assessing Officer (AO). The appellant resisted this move of the AO contending that he was not the owner of the property nor had any tenancy rights therein. He was only staying in the said property for the last more than 45 years and sum of Rs.4 crores was received by the appellant for handing over the vacant possession of the property in question in terms of Settlement Deed dated 25.11.2006. - Therefore, this amount was not received against transfer of any capital asset as defined under Section 2(14) of the Income Tax Act and was thus not taxable as capital gain. The AO rejected this contention taking note of the facts narrated above. – CIT(A) and ITAT also decided against the assessee. Held that: entire indexed cost of acquisition has to be deducted from the amount received by the appellant. – The question of law decided in favor of assessee
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