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2020 (10) TMI 742 - AT - Income TaxCapital gain computation - Disallowance of interest expenses while computing income from Long Term Capital Gain - HELD THAT:- As decided in own case we are satisfied that the ld. Revenue authorities have failed to appreciate the facts and circumstances in right perspective while holding that nexus has not been proved. The assessee has demonstrated that interest free funds were used for acquiring assets and interest expenditures were capitalized. Unsecured loans were remained outstanding at the end of every accounting year. It cannot be construed that nexus has not been demonstrated. We have noticed the order of the AO, which is absolutely silent on any of the aspects though the ld.CIT(A) has made reference to the details in order to demonstrate that the assessee failed to prove the nexus, but on re-appreciation of these very details we are of the view that the ld.CIT(A) has not appreciated the facts in right perspective, and considered them half-heartedly. We find that there is no disparity on facts between AYs 2010-11 [2019 (4) TMI 1912 - ITAT AHMEDABAD] to this assessment year. The assessee has demonstrated that the borrowed funds have been used by him in making investments. Therefore, he is entitled for the claim of interest expenditure while computing the Long Term Capital Gains/Short Term Capital Gains on sale of investments - Appeal of the assessee is partly allowed.
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