TaxTMI 
TaxTMI 
1999 (3) TMI 38
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....his court for the assessment year 1975-76 : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the amount of Rs. 2,30,000 being compensation paid by the assessee and other co-owners to the hutment dwellers for vacating the land was an allowable expenditure within the meaning of section 48 read with section 55 of the Income-tax Act, 1961, in the....
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....eed to vacate the land on payment of Rs. 2,30,000. The assessee and other co-owners sought deduction of this amount together with other expenditure incurred by way of legal expenses from the capital gains as expenditure incurred on account of transfer of the property. The Assessing Officer allowed this expenditure. The Commissioner of Income-tax came to the conclusion that the deduction was errone....
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....nt which arises for consideration in the present matter is whether compensation paid by the assessee and other co-owners to the hutment dwellers for vacating the land was an allowable expenditure within the meaning of section 48 read with section 55 of the Income-tax Act, 1961. The answer to this question will depend on whether the expenses incurred by the assessee and other co-owners constitute c....