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2016 (8) TMI 470 - AT - Income TaxDeduction of traveling expenditure from Capital gains - whether travelling expenditure is an allowable deduction u/s 48(i) of the Act while computing capital gains in connection with transfer of property - assessee is a non-resident Indian and residing in Japan - Held that:- The appellant is living in Japan and has filed her return of income in the status of an NRI disclosing the capital gains on sale of the property. She has travelled to India from Japan on number of occasions in connection with transfer of the subject property. The detail breakup of such visits in terms of travel dates, purpose and place of visits has been submitted during the course of assessment proceedings and is on record. Regarding travelling to Bombay and Jaipur is concerned, the appellant has submitted that she has to meet her advisors and prospective buyers from time to time requiring her to travel to these two places. Being the Co-owner and holding 1/3rd share in the property, she was present in India to execute various documents such as execution of MOU, conveyance deed sale deed etc. The necessity of her presence in India and execution of the various documents related to sale of the property have not been disputed by the lower authorities. It is thus seen that the appellant has proved the direct linkage/nexus between her travel to India and the corresponding travel expenditure with the transfer of the property, capital gains arising out of which has been duly offered to tax. We accordingly delete the disallowance of the travelling expenditure of ₹ 850,000 and hold the same as an allowable deduction under section 48(i) of the Act. - Decided in favour of assessee.
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