9911796707
TMI Blog2019 (7) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... red by the assessee for making a property free from encumbrances. CIT(A) took into consideration the factual aspects that the assessee had to pay a consideration of ₹ 5.5 Crore to one Smt.Tillaikarasi to clear an encumbrance which was created in her favour. Therefore, an amount of ₹ 2.75 Crore was paid to Mr.Vikram Mohan by the original shareholders of the assessee company Mr.K.Rajesh and Mrs.Srivalli. This was for the purpose of returning the original title deeds held by Mr.Vikram Mohan. Apart from that a sum of ₹ 2.74 Crore each was paid to Mr.K.Rajesh and Mrs.Srivalli outgoing shareholders. This expenditure incurred was held to be an eligible deduction for the purpose of preserving and protecting the title of the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT-A holding that GCIPL acquired the land by payment of a compensation of ₹ 8,50,00,000/- without appreciating that the CIT-A also held that the capital gains admitted in the hands of the original shareholders, Shri K Rajesh and Smt Srivally should be assessed as capital gains on sale of the shares? (iii) Whether the ITAT was right in holding that the payment made by the purchaser to the escrow agent was cost of improvement without appreciating that the payment made out of the sale consideration was towards settling of the loan borrowed by one of the directors, Shri Rajesh on 02-05-2008 after entering into an agreement for the sale of the land on 20-04- 2007 and depositing the papers with the escrow agent, Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... improvement under Section 55(1) of the IT Act ? 3. We have heard Mrs.K.G.Usha Rani, learned counsel for the Revenue in both the cases. 4. We have carefully gone through the orders of assessment for the assessment years under consideration namely 2012-13 and 2013- 14 and the orders passed by the Commissioner of Income Tax (Appeals) and the orders passed by the Income Tax Appellate Tribunal. 5. The appeal was filed by the assessee before the CIT(A) disputing the computation of capital gains under Section 45(2) of the Act. The matter concerned an expenditure of ₹ 8.5 Crores incurred by the assessee for making a property free from encumbrances. The CIT(A) took into consideration the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
