Case Law Details
CA Sandeep Kanoi
ITAT Delhi has held in the case of Smiti Golyan Vs. ITO that As per provisions of sec. 48 of the I.T. Act in case of acquisition of the property by way of gift or inheritance the cost of acquisition of the property will be the same as in the hands of the original owner/ transferor/donor. The cost of acquisition includes the cost of improvement of the property which includes the cost incurred on defending or improving the title. Thus in the hands of Smt. Beena Devi the cost of acquisition will include the original cost as well as the cost of litigation and payment of outstanding electricity dues which were necessary for defending the title and for enjoyment of peaceful possession and usufruct of the property.
Issue- Whether Learned A.O. as well as CIT(A) have erred on facts as well as in law in not allowing litigation expenses for 15 years in various courts as well as electricity charges of tenant which were incurred to improve the valuation of property, on which account, the appellant has been able to get sale price of Rs. 7.5 crores even though the property was let out for meager amount of Rs. 1000/- p.m.
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