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COST OF AQUISITION

This query is : Resolved 
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(Querist)
26 August 2008
Whether Extension Fee (Penalty for Non-Construction of house) paid to Housing Developement Authority is a part of Cost of Aquisition or not ??????? Plz give any case reference if possible
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CA RAMESH KUMAR AHUJA

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CA RAMESH KUMAR AHUJA (Expert)
27 August 2008 Extension Fee paid by the existing Owner for the future period is not a part of the Cost of acquisition.
However, the extension fee paid by the buyer for the period befor the date of acquisition on account of seller will definitely be a part of cost of acquisition.
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