Capital Gains- Cost of aquisition

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 June 2010 Dear Sir,

Whether the legal expenses paid in relation to acquisition of title (which was in dispute
) spent at the time of selling of capital asset can be deductible from sale proceeds?

If yes, please mention any related case laws supporting the above opinion.

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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24 June 2010 As per Section 48 all the expenses which are related to sale of the capital assets are allowed to be deducted from the sales consideration.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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24 June 2010 agreed with experts

[Mode of computation.

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;

(ii) the cost of acquisition of the asset and the cost of any improvement thereto:

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Querist : Anonymous

Querist : Anonymous (Querist)

24 June 2010