Question ID : 117

CAPITAL GAIN

Dear All,

One of my client received by way of Decree of Court some portion of family property on the basis of family settlement deed 1984. But that property was still dispute due to encumberances by other persons on it. The assessee aga went to litigation for gettg his clear right over the property. The Delhi High Court ed the defendants to deposit certa amount with it as compesation to be paid to the ptiff (client) which was deposited as FDR with some bank. Ultily the issue was settled 2004 whereby the client (ptiff) received the aforesaid amount of compensation alongwith ter accrued on the FDR.

Issue 1: Whether the litigation cost volved durg the whole episode be allowed as cost of improvement while calcutg LTCG?

Issue 2: Whether the ter accrued on FDR received alongwith compensation be treated as come from other sources separately or added to the amount of compensation and treated as sale conration for the purpose of LTCG? '

Post Your Answer

Please login to post your answer.