Indexed Factory Building Cost Allowed Despite ‘Vacant Land’ Deed; Stamp Duty Value Can’t Inflate Tax

Advertisement Narayana Chandra Reddy Vs DCIT (ITAT Bangalore) Bangalore ITAT Allows Indexed Cost of Factory Building Despite Sale Deed Mentioning Only ‘Vacant Land’ – Stamp Duty Mischief Cannot Inflate Income Tax The Bangalore ITAT granted major relief to the assessee by allowing indexed cost of construction while computing capital gains, despite the sale deed mentioning only a “vacant plot” and not the factory building standing on it. The assessee had sold industrial property at Bommasandra and claimed indexed cost of factory construction incurred in FY 2005-06. The AO and CI...