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2022 (11) TMI 991 - AT - Income TaxCapital gain computation - addition on account of cost of improvement - actual consideration of the property - applicability of section 50C - indexed value of taxes paid to the MCD - assessee has not submitted any documentary evidence regarding cost of improvement relating to the expenses on boundary wall and gate and claimed index value - HELD THAT:- We note that there is no decision of Hon’ble jurisdictional High Court on this subject but the decision of Hon’ble Madras High Court [2020 (10) TMI 517 - MADRAS HIGH COURT] is there which is in favour of the assessee which does provide that the said amendment should be read as clarificatory. The view is followed by the ITAT decisions. There is no dispute that agreement was entered much prior to the date of registration and the part payment has also duly been done at the time of agreement. Hence, the view of the authorities below that circle rate on the date of registration should be applicable is not correct. We hold that in accordance with the ratio of aforesaid case laws, the rate as on the date of agreement should be taken for the purpose of computation. As regards other two aspects of the cost of improvement, no cogent submissions have been made before us. Hence we do not find any infirmity in the order of the ld. CIT (A) where he has upheld the addition on account of cost of improvement. Appeal of the assessee is partly allowed.
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