INCOME TAX ACT, 1961

Section 45

Capital gains - Computation of - Allowability of indexed cost of acquisition -

Assessee was aggrieved by disallowance of indexed cost of the improvement in the property. Case of assessee was that AO proceeded to accept the details of property filed before the Civil Court and ignored other relevant documentary evidences such as photographs showing improvement in the land which resulted into higher sale price from the purchasers. Case of revenue was that there was litigation before Civil Court regarding the dispute arose between the assessee and other parties. According to revenue, as per details of property placed and submitted before the Civil Court, there was no improvement whatsoever done on the said property. Held: Asset was jointly owned by the assessee and his wife. Structures showed boundary wall, gate, windows, fitting etc but it was not clear that structure was located on the same land which was sold by the assessee and his wife. It was observed that assessee's wife who was holding 50% title on the said land, was not allowed cost of improvement or indexed cost of improvement by AO and no further appeal or any other proceedings were initiated by her accepting the rejection of claim by AO. Thus, there was no hesitation to hold that assessee was not entitled for any cost of improvement and consequent indexed cost of improvement.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2012-13

INCOME TAX ACT, 1961

Section 54F

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