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54. Cost of improvement of an investment asset
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54. Cost of improvement of an investment asset.—(1) The cost of improvement of an investment asset shall be any expenditure of a capital nature incurred in making any additions or alterations to the asset,—
(a) by the person ; or
(b) by the previous owner, if the asset is acquired by any special mode of acquisition.
(2) The cost of improvement of the investment asset, notwithstanding anything in sub-section (1), where the asset became the property of the person or the previous owner before the 1st day of April, 2000, shall be any capital expenditure incurred for any addition or alteration to such asset on or after the 1st day of April, 2000.
(3) The cost of improvement of an investment asset shall, notwithstanding anything in sub-section (1), be "nil" in relation to—
(a) an investment asset which is self-generated ;
(b) an investment asset being an undertaking or division transferred by way of a slump sale referred to in sub-clause (l) of clause (267) of section 314 ; or
(c) any investment asset if the cost of improvement cannot be determined or ascertained, for any reason.
(4) Any expenditure deductible in computing the income under any other head of income shall not be taken into account while computing the cost of improvement.
Clause 54 provides that the cost of improvement of an investment asset shall be any expenditure of a capital nature incurred in making any additions or alterations to the asset by the person or by the previous owner, if the asset is acquired by any special mode of acquisition referred to in sub-clause (237) of clause 314.
The said clause also provides that the cost of improvement of the investment asset, in a case where the asset became the property of the person or the previous owner before the first day of April, 2000, shall be any capital expenditure incurred for any addition or alteration to such asset on or after the first day of April, 2000.
The said clause further provides that the cost of improvement of an investment asset shall be "nil" in relation to—
(a) an investment asset acquired by self-generation;
(b) an investment asset being an undertaking or division transferred by way of a slump sale; or
(c) any investment asset if the cost of improvement cannot be determined or ascertained, for any reason.
The said clause also provides that any expenditure deductible in computing the income under any other head of income shall not be taken into account while computing the cost of improvement.
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