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2017 (1) TMI 1437 - AT - Income TaxCost of acquisition of a capital asset u/s.48 clause (ii) - inclusion of interest amount qua the borrowed funds used for purchasing the same - Held that:- There is no dispute that provisions in the Act nowhere provide specific definition of the costs incurred or to be taken in computing capital gains. It is further evident to us that Section 48(ii) of the Act specifically postulates cost of acquisition of the asset instead of mere cost of the asset for the purpose of computing capital gains. We reiterate trite proposition of law that expressions used in a fiscal statute are to be interpreted without supplying any further emphasis and more so when there is no any ambiguity therein. We thus adopt literal interpretation of the above clause to conclude that cost of acquisition of the asset includes assessee’s interest cost as well since incurred on funds borrowed for the purpose of acquisition of the capital asset sold having direct nexus with the same. The assessee’s sole substantive ground raised in the instant appeal is accepted.
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