https://www.taxtmi.com/caselaws?id=359026 A payment made to discharge enforceable rights under an earlier agreement to sell can qualify as expenditure incurred wholly and exclusively in connection with the transfer if it has a direct and proximate nexus with completing the sale. Where the settlement is made to secure release of the prior purchaser's claim, remove the obstacle to transfer, and enable vacant conveyance, it is deductible under Section 48(i) of the Income-tax Act, 1961. The earlier advance merged into the final settlement and was not separately deductible once squared off, so the operative expenditure was the amount paid for relinquishment of the prior contractual rights. en-us Fri, 20 Apr 2018 00:00:00 +0530 Thu, 31 May 2018 16:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=359026 A payment made to discharge enforceable rights under an earlier agreement to sell can qualify as expenditure incurred wholly and exclusively in connection with the transfer if it has a direct and proximate nexus with completing the sale. Where the settlement is made to secure release of the prior purchaser's claim, remove the obstacle to transfer, and enable vacant conveyance, it is deductible under Section 48(i) of the Income-tax Act, 1961. The earlier advance merged into the final settlement and was not separately deductible once squared off, so the operative expenditure was the amount paid for relinquishment of the prior contractual rights. Case-Laws Income Tax Fri, 20 Apr 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=359026