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Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI
Before: SHRI SATBEER SINGH GODARA
Date of hearing 26.11.2025 Date of pronouncement 26.11.2025 ORDER This assessee’s appeal for assessment year 2006-07, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no.ITBA/APL/S/250/2025-26/1081340245(1), dated 30.09.2025 involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties at length. Case file perused.
It emerges during the course or hearing that the assessee/appellant is aggrieved against the CIT(A)’s directions issued to the Assessing Officer, allowing the interest on borrowed the purpose of computing as short term capital gains. It is in this limited context that the Tribunal hereby notices from a perusal of section 48 (i) and (ii) that what all is allowed to be deducted in any expenditure incurred wholly and exclusively in connection with transfer of a capital asset along with cost of acquisition and the improvement therein, as the case may be.
The Revenue could hardly dispute that the CIT(A)’s impugned directions have nowhere considered the above statutory preposition for the purpose of computing the assessee’s capital gains. The tribunal sees merit in his instant sole substantive ground and directs the Assessing Officer to make a fresh computation impugned u/s 48(i) (ii) and allow him all benefit of expenditure incurred on transfer as well as under the latter head of cost of acquisition and cost of improvement thereto as per law in entirety, in very terms.
This assessee’s appeal is allowed.