Section 2(14), read with sections 2(47) and 54, of the Income-tax Act, 1961 - Capital gains

IT: Even where assessee acquired property by provisional booking, he was eligible for section 54 deduction for cost of improvement along with cost of investment
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[2015] 55 taxmann.com 536 (Delhi)
HIGH COURT OF DELHI
Commissioner of Income-tax-XVI
v.
Ram Gopal*
S. RAVINDRA BHAT AND R. K. GAUBA, JJ.
IT APPEAL NO. 70 OF 2015†
FEBRUARY  9, 2015
Section 2(14), read with sections 2(47) and 54, of the Income-tax Act, 1961 - Capital gains - Capital asset (Immovable property) - Assessment year 2009-10 - Whether even booking rights or rights to purchase or rights to obtain title of property is also capital asset - Assessee sold capital assets - Assessee claimed that he acquired another property out of sale consideration and also claimed cost of improvement under section 54 - Assessing Officer held that in absence of an agreement to sell, rights acquired by provisional booking of property was not acquisition of new capital asset and cost of improvement was not deductible - Whether since right of acquiring of property by assessee amounted to capital asset, improvement cost was eligible for exemption along side cost of investments - Held, yes [Paras 5 and 7] [In favour of assessee]