2020 (10) TMI 519

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....he appeal was admitted by a bench of this Court vide order dated 03.08.2015 on the following substantial question of law: (i) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in disallowing the Appellant's claim for deduction of expenditure incurred wholly and exclusively in connection with the transfer of shares on the ground that the expenditure was incurred voluntarily, when section 48(i) of the Act makes no distinction between voluntary or involuntary expenditure.   (ii) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in not considering the additional evidence filed by the Appellant in support of its claim of deduction under section 48(i)....

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....ely in connection with transfer as contemplated under Section 48(i) of the Act. The Assessing Officer by an order dated 30.11.2011 disallowed an amount of Rs. 50 Lakhs from out of the deduction of Rs. 1 Crore claimed under Section 54EC of the Act and disallowed the deduction of Rs. 20,97,600/- claimed under Section 48(i) of the Act towards expenditure. The assessee thereupon preferred an appeal before the Commissioner of Income Tax (Appeals) who by an order dated 14.05.2012 affirmed the order passed by the Assessing Officer. The assessee thereupon approached the Income Tax Appellate Tribunal (hereinafter referred to as 'the Tribunal' for short). The Tribunal vide order dated 28.11.2014 inter alia held that the claim made by the asse....

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....ties to the same transaction had not claimed the benefit of Section 48(i) of the Act, therefore, the contention made on behalf of the assessee in this regard is misconceived. 5. We have considered the submissions made by learned counsel for the parties and have perused the record. Section 48(i) of the Act reads as under: 48. the income chargeable under the head "capital gains" shall be computed, by deducting from the full value of the consideration received or accruing as a result of the transfer of the capital asset the following amounts, namely- (i) expenditure incurred wholly and exclusively in connection with such transfer. Thus, under Section 48(i) of the Act the computation of capital gains has to be made by reduc....