Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (7) TMI 132 - HC - Income TaxComputation of capital gains u/s 45(2) - expenditure incurred by the assessee for making a property free from encumbrances.- whether payment made by the purchaser to the escrow agent was cost of improvement ? - whether expenditure incurred for protecting, preserving and improving the title of land and hence the expenditure has to be allowed as part of the agreement by the then directors with Smt.P.Thillaikarasi, the assessee company had no liabilities? - HELD THAT:- The matter concerned an expenditure incurred by the assessee for making a property free from encumbrances. CIT(A) took into consideration the factual aspects that the assessee had to pay a consideration of ₹ 5.5 Crore to one Smt.Tillaikarasi to clear an encumbrance which was created in her favour. Therefore, an amount of ₹ 2.75 Crore was paid to Mr.Vikram Mohan by the original shareholders of the assessee company Mr.K.Rajesh and Mrs.Srivalli. This was for the purpose of returning the original title deeds held by Mr.Vikram Mohan. Apart from that a sum of ₹ 2.74 Crore each was paid to Mr.K.Rajesh and Mrs.Srivalli outgoing shareholders. This expenditure incurred was held to be an eligible deduction for the purpose of preserving and protecting the title of the property. The factual aspect was tested by the Tribunal in great length and the appeal filed by the Revenue was rejected. On going through contentions advanced before us, we find no question of law much less a substantial question of law arises for consideration in these appeals. For the above reasons these Tax Case Appeals are dismissed.
|