14 September 2012
If purchaser is a dealer in property, it can be REVENUE expenditure else what you suggested is correct... instead of LOSS it is expenditure.
14 September 2012
In the hands of seller this forfeited amount will be reduced from his cost of acquisition. Eg. Cost of acquisition in year 1995 was 5 lakhs and amount forfited in the year 2009 is 150000. Now his new cost of acquisition will be 350000. whenever he sells the land, indexed cost of acquisition of 350000 shall be calculated by considering year 1995 as base for calculation.
08 October 2012
Your real query was answered in the first instance itself.....if purchaser is dealer in property, it can be REVENUE expenditure else what you suggested is correct... instead of LOSS it is expenditure.
09 October 2012
Purchaser will not be eligible to claim it as capital loss. In this case there is no relinquishment of a right in the asset, therefore no treatment under head capital gains. Bombay high court decided the same In case of sterling investment corporation ltd (1980).
10 October 2012
Dear Abhishek, you should think twice before writing anything. You should not treat a person (mr Amol) in such harsh manner and that too that person who provide you with free advices.Even though you did not like his advice than also you should be thankful to him as he atleast tried to help you. Excuse me if I hurt your feelings.
CAclubindia
