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2016 (10) TMI 803 - ITAT HYDERABADRevision u/s 263 - Computation of capital gains - Deduction u/s 48 - land vacation expenses - Held that:- There is no doubt that assessee has claimed the expenditure as part of cost of improvement and the proportionate expenditure was examined by the AO and allowed. Therefore, the observation of the CIT that AO has not verified all the details cannot be sustained. Moreover, we are unable to understand the view of CIT that the expenditures are not allowable under the provisions of Section 55(1)(b)(2) of the Act. As far as cancellation of development agreement with M/s. GPR Divya Sai Constructions is concerned, Ld. CIT’s observation that it is a capital loss and cannot be allowed is surprising. If it is a capital loss, then while computing the capital gains, such loss is certainly allowable and so, no prejudice is caused to the Revenue. - Deduction allowed - Decided in favor of assessee.
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