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2020 (10) TMI 89 - AT - Income TaxCapital gain computation - allowable expenses u/s 48(1) - CIT(A) accepted gain on sales of shares as long-term capital gain and allowed deduction u/s 54EC but expenses claimed on sale of such shares on account of litigation and travelling expenses was rejected on the ground that the assessee could not substantiate the incurring of such expenses - HELD THAT:- CIT(A) rejected the claim of the assessee on the ground that the assessee could not substantiate its claim that the travel and litigation expenses should be deducted for computing long term capital gain. It is the submission of the ld. counsel that various details furnished before the CIT(A) were not properly gone through by him and he has not passed any comments on that - assessee also filed certain additional evidences and submitted that these evidences go to the root of the matter of the issue in hand. In the interest of justice we admit the additional evidences and restore the issue to the file of the AO with a direction to adjudicate the issue relating to allowability of deduction of such traveling and litigation expenses from the long term capital gain earned by the assessee. AO shall decide the issue afresh in accordance with the law after giving due opportunity of being heard to the assessee. We hold and direct accordingly. The ground raised by the assessee is accordingly allowed for statistical purposes. Disallowing the Long Term Capital Loss incurred by the appellant on sale of Preference Shares held by it for more than 12 months - HELD THAT:- Perusal of the assessment order shows that the AO nowhere has confronted the assessee regarding the sale of such shares at ₹ 10/- per share which were purchased at a price of ₹ 100/-. The order of the CIT(A) is also silent on this issue - restore the issue to the file of the AO with the direction to go through the various evidences including the additional evidence filed before the Tribunal which are admitted by us and decide the issue afresh and in accordance with the law - Ground No.2 by the assessee is accordingly allowed for statistical purposes.
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