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TMI Blog2021 (8) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... and in the circumstances of the case and in law learned CIT (Appeals) failed to appreciate that the capital assets were transferred along with all advantages, benefits, claims, appurtenances, use and rights etc and hence the cost of assets transferred also includes the cost of acquiring such advantages, benefits, claims, appurtenances, use and rights such as water supply and electric supply for which deposits of Rs. 1,49,256/-were given to MIDC, MSEB etc. 2. Alternatively on facts and in the circumstances of the case and in law learned CIT (Appeals), having found that assessee had given deposits of Rs. 1,49,256/- to MIDC, MSEB etc for supply of water and electricity etc in or upon the capital asset transferred, ought to have allowed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the leasehold land as well as with shed. 3. The shed formed part of depreciable fixed assets. While computing short-term capital gains from shed, the assessee deducted not only the WDV of shed but also deducted WDV of other assets and deposits as per MIDC (authority) for Rs. 13.21 Lacs. These include assets written-off for Rs. 4.78 Lacs and deposits written-off for Rs. 1.49 Lacs. The deduction of these two components was denied by Ld. AO. 4. During appellate proceedings, the assessee submitted that it had given various deposits to MIDC towards water, additional water etc. These deposits were part and parcel of allotted land which also got assigned in favor of assignee. The MIDC would not refund the deposits as long as the said premis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2(1)(iii) but the same could not be a part of cost of acquisition. Aggrieved, the assessee is in further appeal before us. 6. So far as the write-off of deposits is concerned, we find that the rights in land and shed have been assigned along with all the rights, privileges etc. through composite agreement. The deposits have been paid to MIDC for various purposes in connection with lease of land and therefore, these form part & parcel of the land & shed. Since, the rights have been transferred, these would also stand transferred to the assignee. This being so, there is no reason as to why the deduction of the same is not available to the assessee while computing the capital gains. Therefore, we direct Ld. AO to allow the deduction of the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X
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