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2012 (8) TMI 668 - ITAT CHENNAICapital gain – disallowance of proportionate IPO expenses - assessee was a director-shareholder, had gone for an Initial Public Offering (IPO) of its shares during the relevant previous year and assessee sold his shares as part of this IPO - assessee's share was transferred to assessee only net of his proportionate share of expenses – Held that:- Assessee claimed his share of IPO expense as deduction under section 48(1) as part of expenditure incurred wholly and exclusively in connection with transfer of shares - Just because the expenditure was incurred based on a legal obligation would not render such expenditure as something not incurred wholly and exclusively in connection with the sale of shares - Assessee also produced Prospectus of IPO which clearly shows that assessee was obliged to meet pro rata share of IPO expenses - disallowance is deleted and assessee's appeal allowed.
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