Fact of Case : - A person bought a land in 1965 say for Rs. 2000. There was a dispute on the ownership of land. That person lodged a case in court. He had spent around Rs. 150000 on legal expenses. He won the case in 2003-04 and accordingly he had capitalized the land in his book at a Rs. 152000 in 2003-04.
Question: - What should be cost of acquisition and year of acquisition? Whether amount spent for litigation can be considered as a part of cost of acquisition. Whether amount spent on litigation should be considered as cost of improvement.
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