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| The Tax Publishers2020 TaxPub(DT) 4293 (Karn-HC) : (2021) 276 TAXMAN 0207 INCOME TAX ACT, 1961
Section 48
Where assessee claimed deduction under section 48(i) for expenditure incurred in connection with transfer of shares, even if assessee made payment as required under Share Purchase Agreement, same could not be termed as expenditure in connection with transfer of shares because same depends in facts and circumstances of case and Tribunal rightly held that it was a voluntary payment and could not be allowed.
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Capital gains - Computation - Expenditure claimed to be incurred in connection with transfer of shares as per share purchase agreement -
Issue was as regards claim of deduction under section 48(i) for expenditure incurred in connection with transfer of shares. Tribunal held that claim made by assessee could at best be regarded as voluntary payment and not as expenditure wholly and exclusively with the transfer of shares. Held: Tribunal after taking note of clause 29 in share purchase agreement recorded a finding that even if assessee made payment as required under clause 29 of Share Purchase Agreement, same could not be termed as expenditure in connection with transfer of shares. Whether expenditure is incurred wholly and exclusively in connection with transfer of an asset is a question of fact, which depends in the facts and circumstances of the case. Tribunal rightly held that assessee failed to point out that other share holders who were parties to same transaction, had claimed the similar expenditure in their returns as was claimed by the assessee. No substantial question of law arose for consideration.
REFERRED :
FAVOUR : Against the assessee.
A.Y. : 2009-10
IN THE KARNATAKA HIGH COURT
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