The Tax Publishers2020 TaxPub(DT) 4054 (Del-Trib)

INCOME TAX ACT, 1961

Section 45

Where in regard to issue relating to allowability of deduction of travelling and litigation expenses from the long-term capital gain earned by the assessee, considering the fact that in connection with transfer of shares assessee filed certain additional evidences in support of its claim, matter was remanded back to AO for reconsideration afresh.

Capital gains - Computation - Allowability of legal and travelling expenses incurred by assessee wholly and exclusively in connection with transfer of shares -

Assessee challenged order of CIT(A) holding that the legal and travelling expenses incurred by assessee wholly and exclusively in connection with the transfer of shares held and transferred by it and claimed against income chargeable under the head 'Capital gains', were not allowable. Held: CIT(A) rejected the claim of the assessee on ground that assessee could not substantiate its claim that the travel and litigation expenses should be deducted for computing long-term capital gain. It was the submission of assessee various details furnished before CIT(A) were not properly gone through by him and he did not pass any comments on that. Assessee also filed certain additional evidences and submitted that these evidences went to the root of the matter of the issue in hand. In the interest of justice, additional evidences were admitted and issue was restored to the file of AO with a direction to adjudicate the issue relating to allowability of deduction of such travelling and litigation expenses from the long-term capital gain earned by the assessee.

REFERRED : Sumati Dayal v. CIT (1995) 214 ITR 801 (SC) : 1995 TaxPub(DT) 1173 (SC) and Killick Nixon Ltd. v. Dy. CIT [ITA No.5518 of 2010, dt. 6-3-2012].

FAVOUR : Matter remanded.

A.Y. : 2010-11



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