https://www.taxtmi.com/caselaws?id=756715 The ITAT Chennai-AT held that interest expenditure is allowable in computing long-term capital gains. The assessee, engaged in real estate projects, acquired land through bank loans but the project failed and the bank sold the land retaining all proceeds. Following precedents from Sri Hariram Hotels P Ltd. and Mithlesh Kumari cases, the tribunal ruled that interest paid on loans for acquiring capital assets forms part of the cost of acquisition. The AO was directed to re-compute the assessee's income including the interest expenditure in capital gains calculations. en-us Mon, 03 Jun 2024 00:00:00 +0530 Wed, 07 Aug 2024 09:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756715 The ITAT Chennai-AT held that interest expenditure is allowable in computing long-term capital gains. The assessee, engaged in real estate projects, acquired land through bank loans but the project failed and the bank sold the land retaining all proceeds. Following precedents from Sri Hariram Hotels P Ltd. and Mithlesh Kumari cases, the tribunal ruled that interest paid on loans for acquiring capital assets forms part of the cost of acquisition. The AO was directed to re-compute the assessee's income including the interest expenditure in capital gains calculations. Case-Laws Income Tax Mon, 03 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756715