TRIDENT AUTOMOBILES (P) LTD,BANGALORE vs. DCIT CIRCLE 7(1)(1), BANGALORE, BANGALORE

ITA 1811/BANG/2025Status: DisposedITAT Bangalore17 September 2026AY 2017-185 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the Rs. 3 Crores paid to the intermediary was an expenditure incurred to extinguish the rights of the agreement holder, thus improving the assessee's title. This amount is deductible under Section 48 of the Act in computing capital gains.

What were the facts?

The assessee declared Rs. 3 Crores as sale consideration for a property sale, while the AO invoked Section 50C and considered Rs. 6 Crores as sale consideration. The assessee argued that Rs. 3 Crores was paid to an intermediary as per an agreement to clear overriding title.

What were the issues?

Whether the payment made to an intermediary to clear overriding title is deductible as expenditure in computing capital gains under Section 48, and if Section 50C is applicable when the sale deed reflects market value.

Which sections of the Income-tax Act were involved?

Section 50C,Section 48

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BANGALORE BENCHES, BANGALORE

Before: SHRI BALAKRISHNAN S & SHRI KESHAV DUBEY

For Respondent: Shri. Pradeep S - Addl. CIT
Pronounced: 17.09.2026

PER SHRI BALAKRISHNAN S, ACCOUNTANT MEMBER:

This appeal is filed by the assessee against the order of learned CIT(A), NFAC, Delhi vide DIN: ITBA/NFAC/S/250/2025-26/1077060932(1) dated 16.06.2025 for the Assessment Year 2017-18, arising out of the Order passed under section 143(3) of the Act dated 26.12.2019. 2. Briefly stated, the facts of the case are assessee company filed its return of income for the Assessme

The order continues below.

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