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TMI Blog2021 (8) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... d along with all the rights, privileges etc. through composite agreement. The deposits have been paid to MIDC for various purposes in connection with lease of land and therefore, these form part parcel of the land shed. Since, the rights have been transferred, these would also stand transferred to the assignee. This being so, there is no reason as to why the deduction of the same is not available to the assessee while computing the capital gains - we direct Ld. AO to allow the deduction of the same. So far as the write-off of other assets is concerned, we find that fixed assets have been reduced to nil at year-end which is evident from assessee s Balance Sheet as placed on record. Hence, the fixed asset block has ceased to exist. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s cost of improvement of such capital asset. 3. Learned CIT (Appeals) having held that written down value (WDV) of ₹ 4,78,083/- of fixed assets discarded and written off in books is not deductible while computing capital gains as it does not form part of cost of acquisition or cost of improvement of assets sold and having further observed that deduction of WDV of these assets is allowable u/s 32(i)(iii) of the I.T.Act, learned CIT (Appeals) ought to have allowed the same u/s 32(i)(iii) because the appellant is entitled to the same and it was also claimed before CIT (Appeals). 4. The appellant craves leave for permission to add, amend or alter any ground of appeal at the time of hearing. As evident, the subject matter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... long as the said premises were occupied by assignee. The assessee received composite consideration for assignment of land along with deposits claims. However, Ld. CIT(A) rejected the same since the write-off do not constitute cost of acquisition or cost of improvement of the property. 5. Regarding other assets written-off, the position was summarized as under: - No. Particulars WDV as on 31/03/2014 Remarks 1. Air Conditioner 990 Remaining useful life was less 2. Computer 135 No scrap value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he cost of removing would be more than cost of scrap. Since these assets were discarded, the deduction of the same should be allowed u/s 32(1)(iii). Though Ld. CIT(A) concurred that the deduction could be allowed u/s 32(1)(iii) but the same could not be a part of cost of acquisition. Aggrieved, the assessee is in further appeal before us. 6. So far as the write-off of deposits is concerned, we find that the rights in land and shed have been assigned along with all the rights, privileges etc. through composite agreement. The deposits have been paid to MIDC for various purposes in connection with lease of land and therefore, these form part parcel of the land shed. Since, the rights have been transferred, these would also stand transferre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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