https://www.taxtmi.com/caselaws?id=467794 Interest and related mortgage expenses on a loan used to discharge the original housing loan were treated as part of the cost of acquisition for capital gains computation, because the later borrowing remained directly linked to funding the purchase of the property. On those facts, the post-acquisition loan was not viewed as an independent expense disconnected from acquisition. The ruling applies section 48 of the Income-tax Act, 1961 to permit deduction of borrowing costs where the borrowing either finances the acquisition or merely substitutes the original acquisition loan. The contrary view of the tax authorities was rejected. en-us Thu, 28 Apr 2022 00:00:00 +0530 Fri, 03 Apr 2026 14:26:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=467794 Interest and related mortgage expenses on a loan used to discharge the original housing loan were treated as part of the cost of acquisition for capital gains computation, because the later borrowing remained directly linked to funding the purchase of the property. On those facts, the post-acquisition loan was not viewed as an independent expense disconnected from acquisition. The ruling applies section 48 of the Income-tax Act, 1961 to permit deduction of borrowing costs where the borrowing either finances the acquisition or merely substitutes the original acquisition loan. The contrary view of the tax authorities was rejected. Case-Laws Income Tax Thu, 28 Apr 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=467794