9911796707
TMI Blog2023 (7) TMI 405X X X X Extracts X X X X X X X X Extracts X X X X ..... for payment of compensation to the other legal heir by way of family arrangement and deductible as cost of acquisition from the sale value. 2. The CIT(A) erred in not applying amended provision of sec.2(14) and erred in considering the agricultural land situate beyond two kilometres from municipal limits as capital asset for purposes of computing capital gain." 2. The relevant facts are that assessee is an individual deriving income from salary, rent and other sources and he is covered by Portuguese Civil Code and thus by u/sec.5A of the Income Tax Act. The assessee filed his return of income on 31/07/2009 declaring total income of Rs. 1,34,90,240/-. The Assessing Officer (AO) completed the assessment u/sec.143(3) determining the total i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the assessee paid Rs. 1.25 crore to his sister also as part of family arbitration award. This contention of the assessee was not accepted by the AO since the family arbitration award had nothing to do with the LTCG earned by the assessee. The AO held that the ownership of the property sold by the assessee was convened to the assessee by gift deed dated 12/09/2005 registered with Sub-Registrar, Ilhas, Panaji on 13/09/2005 by his parents. Hence, the assessee had exclusive right and title to the said property and therefore, the interest claimed by the assessee was disallowed by the AO as the same was not allowable as per the provisions of sec.48 of the Act. 3. When the matter went to the ld. CIT(A), detailed written submissions were fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the ld. CIT(A). 4. At the time of hearing, the ld.AR submitted that the assessee is claiming this deduction of the amount of interest paid as cost of acquisition of the property. 5. We have heard the submissions of the parties and have given considerable thought to the materials/documents on record, analysed the facts and circumstances in this case and have also considered the submissions made before this Bench. 6. The facts are unambiguous and, admittedly the land which is the capital asset sold by the assessee, in which he had also the ownership of the asset by virtue of the registered gift deed executed in his favour by his parents. Thereafter, he had rightly offered LTCG in his return of income. Parallelly, there was another inci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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