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TMI Blog2016 (9) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... Solitary grounds of appeal taken in ITA No.87/Ahd/2012 is common with ground nos.1 and 2 taken in the ITA No.86/Ahd/2012. The issue in this grounds of appeal is whether both the assessee are entitled for deduction of the amounts paid by them to their brothers for getting the premises vacated while computing the capital gains on sale of house-property. 3. Shri Nanubhai Keshavlal Chokshi, HUF has filed its return of income on 28.3.2009 declaring total income at Rs. 32,390/-. He has shown income from long term capital gain from sale of property and the income from other sources. The assessee has shown long term capital gain of sales proceeds of Rs. 2.07 crores from the sale of property. He has claimed deduction of Rs. 21.00 lakhs on the groun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll of father of the assessee dated 12-06-1957, the different properties were distributed between the assesses and Shri Laxmanbhai K.. Chokshi so that both of them should get- equal amount of properties valuing Rs. 35,000/- each. That shows that the assesses has exclusive right over the property on which the assesses claims that his brother was occupying as tenant." In the case of Lallubhai K. Chokshi, HUF (1) Municipal Tax Bills submitted by you shows that you were the sole occupant of the property on which he is claiming that it was also occupied by the tenant; (2) In the valuation report of the property dated 22.06.2007 which were done before sale of the said property, also states that assessee was the sole occupant of the property. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hargeable under the head "Capital Gains" shall be computed by deducting from the full value of the consideration received or accruing, as a result of the transfer of the capital asset the following amounts, viz. (i) the expenditure incurred wholly and exclusively in connection with such transfer, and (ii) cost of acquisition of the asset and the cost of any improvement thereto, provided ............ The question before me is whether the payment made by both the assessees to their bothers is to be considered as expenditure incurred for improvement of asset or the title. According to both the assessees, their brothers were residing in the house owned by them and while selling the house in order to get vacant possession, payment of Rs. 21 lakh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... statement that they were residing in these houses along with their brothers. Shri Laxmanbhai K. Chokshi, though had not been paying any rent, but he was paying electricity bills. I am of the view that the payments were made for improvement of title of the property and they are entitled to claim deduction of cost of payment. Therefore, I allow solitary ground of appeal raised in the case of Shri Lallubhai Keshavlal Chokshi, HUF and direct the AO to grant him deduction of Rs. 31 lakhs for computing the long term capital gain. Similarly, I allow ground nos.1 and 2 in the case of Shri Nanubhai Keshavlal Chokshi, HUF and direct the AO to allow deduction of Rs. 21 lakhs while computing the long term capital gain. 5. In the appeal of Shri Lallub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. In the next ground of appeal, the grievance of the assessee is that the ld.CIT(A) has erred in confirming the action of the ld.AO for taking indexed cost of acquisition at Rs. 18,21,000/- as against the value of Rs. 19,79,160/- adopted by the assessee as on 1.4.1981. 9. Brief facts of the case are that the assessee had valued its property as on 1.4.1981 at Rs. 19,79,160/-. This valuation was supported by the report of valuer, Shri Hasmukh C. Patel dated 22.6.2007. According to the assessee, he has half-share in the property and other half was with Shri Ashokbhai Keshavdas Chowkshi. While considering the case of Shri Ashokbhai Keshavdas Chowkshi and Shri Lallubhai Keshavlal Chokshi, HUF, it was considered by the AO that value of the lan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el Nagar Society, Ahmedabad. It comprised an area of 1821.00 sq.meters. There is a distribution deed dated 18.8.2006 between the assessee and Shri Ashokbhai Keshavdas Chowkshi. Thus, the assessee has an area of 910.50 sq.meters. The ld. Registered valuer has estimated the total value at Rs. 36.42 lakhs. It represents to the area of 1821.00 sq.meters. Similarly, there was a built-up area of 316.32 sq.meters. He applied the rate of 1000/- and valued at Rs. 3,16,320/-. The total value has been shown at Rs. 39,58,320/-. The assessee has half share and the value has been shown at Rs. 19,79,160/- . Against this valuation report, all other correspondences, i.e. confirmation etc. from valuer is totally irrelevant at the end of the AO, because the v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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