Expenditure on removal of encumbrance includible in cost of new house property

ACIT Vs Himanshu Jayanti Lal Kamdar (ITAT Ahmedabad) The central controversy involved in the present case is towards determination of total cost of acquisition of new house for the purposes of claim of deduction under s.54F of the Act while computing LTCG on sale of plot. The assessee has also included the cost incurred towards vacating the new property from tenant amounting to Rs.35 Lakhs as well as certain costs incurred towards repairs and renovation of the new house as part of cost of acquisition of new house in addition to original cost incurred for its purchase. The original cost of acqu...