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2014 (5) TMI 781 - HC - Income TaxComputation of Capital Gains - Expenses u/s 48(i) of the Act - Whether the sum paid by the assessee pursuant to the award passed in favour of Onkar Management Private Limited can be treated as expenditure incurred with regard to the transfer u/s 48(i) of the Act – Held that:- Following Commissioner of Income-Tax Versus Bradford Trading Co. P. Ltd. [2002 (9) TMI 33 - MADRAS High Court] and Commissioner Of Income-Tax Versus Shakuntala Kantilal [1991 (3) TMI 123 - BOMBAY High Court] - unless the assessee had settled the dispute, the sale transaction could not have materialised and the sale consideration had to be reduced by the amount of compensation paid – the expression used in section 48 of the Act, expenditure incurred wholly and exclusively in connection with such transfer has wider connotation than the expression, ‘for the transfer’ - the transfer would not have taken place and the payment has necessarily to be made for the transfer of the hotel - the sum was expended by the assessee wholly and exclusively in connection with the transfer of the capital asset and not de hors the transfer – Decided against Revenue.
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