2012 (9) TMI 359

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....ent individual. She had sold a flat in Bangalore for a consideration of Rs.20 lakhs and after deducting brokerage of Rs.20,000/- had shown net sale consideration of Rs.19.80 lakhs. After deducting indexed cost of acquisition, registration and improvement amounting to Rs.19,91,784/- declared 'nil' long term capital gain. However, the AO considering the cost of acquisition at only Rs.3,06,410/- allowed indexed cost amounting to Rs.3,77,700/- and determined the long term capital gain at Rs.16,02,300/-. Against addition of lower cost of acquisition, non-allowance of registration expenses and cost of improvement and lesser indexed cost of acquisition, the assessee was aggrieved and took the matter in appeal before the first appellate authorit....

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....ase of the properly by the buyer. One cannot say that going by common sense the property could not have been acquired for the consideration mentioned in registered deed and hence the sale consideration should be adopted at higher value. 5. The learned CIT(A) erred in allowing the cost of improvement claimed by assessee since the assessee has claimed to have incurred the cost of improvement during the FY 2000-01 whereas the property was acquired by the assessee as per the registered sale deed during the FY 2002-   6. As far-as the assessee is concerned, cost of improvement is only to the extent of what she spent as she claims. So there is no question of determining the capital gains on any other tact other than this." 4. At the....

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.... appellant invested Rs.3,10,000 towards the improvement of the flat in FY 00-01. vii) Also a sum of Rs.17,650 was spent on registration on 3-7-2002 improvement in Fy 2002-03. viii) The property was sold on 16-1-2008 for Rs.20 lakhs in FY 07-08. The appellant computed the LTCG as under: Sale consideration Rs.20,00,000 Less: Brokerage Rs.20,000 Net consideration Rs.19,80,000   Rs.15,49,313 Indexed cost of registration Rs. 21,756 Indexed cost of acquisition Rs. 4,20,714 Total Rs. 19,91,784       Less: Indexed cost of acquisition Rs.15,49,313   Indexed cost of acquisition Rs. 21,756   Indexed cost of acquisition Rs. 4,20,714 &nbs....

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....rtified that a sum of Rs.7,75,305/- was paid during the period from 30.04.1996 to 01.06.2000 by way of installment. Besides that, for having invested on the improvement a sum of Rs.3,10,000/-, in addition to appellant's own certification, the Engineer contractors M/ s. Renuka Constructions have given a confirmatory letter along with their copy of the returns for the relevant year. Accordingly, it is a very clear case where the investment on the flat is made to the extent of Rs.8,96,970/- besides investment made on improvement to the extent of Rs.3,10,000/- Registration expenses are also evidenced as seen from the copy of the registered sale deed. Even going by common sense it is clear that no flat in BTM Layout in 2002 was available at t....