https://www.taxtmi.com/caselaws?id=762317 The ITAT Mumbai held that interest paid on borrowed funds for property purchase constitutes cost of acquisition/improvement for LTCG computation, with indexation benefits applicable. The tribunal followed the consistency rule, noting revenue authorities previously allowed similar deductions without double deduction. The court emphasized that prior to Finance Act 2023 amendments (effective 01.04.2024), no statutory restriction existed excluding interest deductions under section 24(b) from acquisition costs. Following jurisdictional precedents and applying the principle that favorable taxpayer construction should be adopted when two reasonable interpretations exist, the tribunal allowed the assessee's claim for interest deduction in capital gains computation. en-us Tue, 26 Nov 2024 00:00:00 +0530 Thu, 28 Nov 2024 10:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762317 The ITAT Mumbai held that interest paid on borrowed funds for property purchase constitutes cost of acquisition/improvement for LTCG computation, with indexation benefits applicable. The tribunal followed the consistency rule, noting revenue authorities previously allowed similar deductions without double deduction. The court emphasized that prior to Finance Act 2023 amendments (effective 01.04.2024), no statutory restriction existed excluding interest deductions under section 24(b) from acquisition costs. Following jurisdictional precedents and applying the principle that favorable taxpayer construction should be adopted when two reasonable interpretations exist, the tribunal allowed the assessee's claim for interest deduction in capital gains computation. Case-Laws Income Tax Tue, 26 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762317