1998 (10) TMI 16 - HC - Income Tax

Capital Gains, Computation Of Capital Gains, Cost Of Acquisition Of Capital Asset, Deductions

Summary

The High Court of Madras ruled that urban land tax and corporation tax paid by the owner of the land cannot be considered as part of the cost of acquisition for determining capital gains. The court cited Section 48 of the Act and stated that such taxes do not fall under the allowable expenditures. The Tribunal was deemed to be in error for allowing the deduction of these taxes. The judgment favored the Revenue and costs of Rs. 1,500 were awarded to them.