https://www.taxtmi.com/caselaws?id=771853 ITAT Hyderabad dismissed the assessee's appeal regarding deduction of compensation expenses under Section 48 while computing LTCG on share transfer. The assessee had paid compensation to one party for not transferring shares as per a separate agreement, but later sold the same shares to another party. The tribunal held that the compensation payment and the actual share sale were two independent transactions with no connection. Since the compensation was not incurred wholly and exclusively in connection with the transfer that generated LTCG, it was not deductible under Section 48. The appeal was dismissed as lacking substance. en-us Thu, 22 May 2025 00:00:00 +0530 Wed, 28 May 2025 16:10:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771853 ITAT Hyderabad dismissed the assessee's appeal regarding deduction of compensation expenses under Section 48 while computing LTCG on share transfer. The assessee had paid compensation to one party for not transferring shares as per a separate agreement, but later sold the same shares to another party. The tribunal held that the compensation payment and the actual share sale were two independent transactions with no connection. Since the compensation was not incurred wholly and exclusively in connection with the transfer that generated LTCG, it was not deductible under Section 48. The appeal was dismissed as lacking substance. Case-Laws Income Tax Thu, 22 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771853