https://www.taxtmi.com/caselaws?id=8847 For capital gains computation under section 12B(2) of the Indian Income-tax Act, 1922, actual cost includes amounts necessarily laid out to acquire the capital asset, not merely the bare purchase price. Interest paid on borrowed funds used to buy the plot was treated as directly connected with acquisition and therefore part of actual cost. Ground rent, however, was paid to retain possession after acquisition and was treated as a maintenance-type expense, not an acquisition cost. The text explains the distinction between acquisition expenditure and post-acquisition retention expenditure for determining actual cost. en-us Mon, 05 Feb 1973 00:00:00 +0530 Tue, 20 Jan 2026 13:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8847 For capital gains computation under section 12B(2) of the Indian Income-tax Act, 1922, actual cost includes amounts necessarily laid out to acquire the capital asset, not merely the bare purchase price. Interest paid on borrowed funds used to buy the plot was treated as directly connected with acquisition and therefore part of actual cost. Ground rent, however, was paid to retain possession after acquisition and was treated as a maintenance-type expense, not an acquisition cost. The text explains the distinction between acquisition expenditure and post-acquisition retention expenditure for determining actual cost. Case-Laws Income Tax Mon, 05 Feb 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8847