https://www.taxtmi.com/caselaws?id=233969 Expenditure incurred to remove a defect in title or to clear an outstanding contractual claim that impedes transfer can form part of the cost of acquisition for capital gains purposes under section 48 of the Income-tax Act, 1961. Here, payment made under an arbitration award arising from breach of an earlier transfer agreement was treated as having been incurred to perfect transferable ownership and remove the impediment created by the prior claim. The deduction was therefore allowable in computing capital gains, and the disallowance was set aside in favour of the assessee. en-us Tue, 14 May 2013 00:00:00 +0530 Tue, 21 May 2013 17:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=233969 Expenditure incurred to remove a defect in title or to clear an outstanding contractual claim that impedes transfer can form part of the cost of acquisition for capital gains purposes under section 48 of the Income-tax Act, 1961. Here, payment made under an arbitration award arising from breach of an earlier transfer agreement was treated as having been incurred to perfect transferable ownership and remove the impediment created by the prior claim. The deduction was therefore allowable in computing capital gains, and the disallowance was set aside in favour of the assessee. Case-Laws Income Tax Tue, 14 May 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=233969