https://www.taxtmi.com/caselaws?id=36862 Litigation expenditure incurred in proceedings for enhancement of compensation on compulsory acquisition is deductible in computing capital gains if it is shown to have been wholly and exclusively incurred in connection with the transfer under Section 48 of the Income-tax Act, 1961. A compulsory acquisition is not complete until compensation is finally determined, so enhancement proceedings remain intrinsically linked to the transfer. The timing of the expenditure is not decisive; it is deductible even if incurred after the award, provided the direct connection with the acquisition is proved. en-us Mon, 03 Mar 1980 00:00:00 +0530 Fri, 12 Feb 2016 12:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36862 Litigation expenditure incurred in proceedings for enhancement of compensation on compulsory acquisition is deductible in computing capital gains if it is shown to have been wholly and exclusively incurred in connection with the transfer under Section 48 of the Income-tax Act, 1961. A compulsory acquisition is not complete until compensation is finally determined, so enhancement proceedings remain intrinsically linked to the transfer. The timing of the expenditure is not decisive; it is deductible even if incurred after the award, provided the direct connection with the acquisition is proved. Case-Laws Income Tax Mon, 03 Mar 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36862