2011 (6) TMI 458

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....ted under section 143(3) read with section 147. In the return of income the assessee has admitted an amount of Rs. 3,89,670 as long-term capital gains, which is the unutilised amount out of Rs. 12,10,000 representing the long-term capital gains for the assessment year 2005-06 arising out of the sale of residential property, which proceeds were invested in the capital gains account scheme. The assessee thereafter purchased a residential apartment on June 28, 2006 for Rs. 8,20,330. The abovestated cost of acquisition of Rs. 8,20,330 included the price as per sale deed, stamp charges, registration charges, advocate fees, brokerage, tiles laying, white-wash Asian Paints, electrical rewiring and wood work. 3. On examining the records of the c....

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....ost acquisition expenses cannot go back to form part of the acquisition cost as such. The learned chartered accountant has placed before us a judgment of the Income-tax Appellate Tribunal, Mumbai Bench-G in the case of Saleem Fazelbhoy v. Dy. CIT [2007] 106 ITD 167, where the Tribunal has allowed to enhance the cost of acquisition by certain repair and remodelling expenses carried out by the assessee. But in that case incurring of that expenditure was part of the sale contract of the property and those activities were carried out by the assessee for and on behalf of the seller of the property and it was in such circumstances that the Tribunal has held that those amounts also would form part of the acquisition cost. But in the present case t....