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2018 (8) TMI 1049 - AT - Income TaxDeductions while computing the capital gains u/s 48(1) - amount paid to the tenants for obtaining vacant possession of the property belonging to the appellant - expenditure incurred wholly and exclusively in connection with transfer of capital asset - MAT - inclusion of income from capital gains for the purpose of computing book profits u/s 115J (Minimum Alternate Tax) - Held that:- compensation paid by the assessee to two tenants for getting vacant possession of the property is deductible as an expenditure incurred wholly and exclusively in connection with transfer of the property while computing capital gains. - Decided in favor of assessee. MAT - Computation of book profit u/s 115JB - inclusion of capital gains - Held that:- there is no scope for the AO to make adjustments towards book profit u/s 115JB, except as provided under Explanation 1 to section 115JB of the Income-tax Act, 1961.- AO was incorrect in recomputing book profit to make adjustments towards capital gain derived from transfer of property. Hence, we direct the AO to delete adjustments made towards ‘Long term capital gain’ derived from sale of property to the book profit computed u/s 115JB of the Income-tax Act, 1961. - Decided in favor of assessee.
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