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TMI Blog2023 (7) TMI 405X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as deduction from the value of LTCG u/sec. 48. We do not agree with the contention raised by assessee that it is the deduction claimed due to cost of acquisition since there is no cost incurred for acquisition, as the property had been gifted to the assessee by his parents. None of the heads of expenses for computation of capital gains as defined u/sec. 48 is applicable in the case of the assessee. The deduction of interest paid is neither related to cost of acquisition, cost of improvement or cost of transfer of asset sold. We do not find any infirmity with the findings of the ld. CIT(A) which is hereby upheld. Ground No.1 of the assessee s appeal is dismissed. - ITA No. 185/PAN/2018 - - - Dated:- 7-7-2023 - Shri R.S. Syal, Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0% thereof in the hands of the assessee. It was the contention of the assessee that such interest claimed was deductible as the cost of acquisition from the sale value, since the capital asset sold during the previous year was used for payment of compensation to the other legal heirs by way of family arrangement. The assessee had sold a land by execution of sale deed on 06/10/2008 at village Ella in Tiswadi Taluka, North Goa admeasuring 48,450 and 5,250 sq.mts. for a consideration of Rs. 5.50 crores. The assessee offered long term capital gains (LTCG) on the sale of land after claiming exemption u/sec. 54F, 54F(4) and interest paid to M/s. Fabrica De Gas Pvt. Ltd. The total LTCG offered to tax by the assessee was Rs. 2,30,62,021/- in the ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee had absolute right and title over the property sold since it was gifted by his parents as per registered gift deed dated 12/09/2005. Thereafter, on such sale, the assessee had himself offered LTCG in his return of income. The claim of the assessee for reducing the interest as deduction from the capital gains is not justified within the parameters of the Act specifically sec.48 of the Act. The arbitration award by which the assessee had given certain money to his brother and sister as per the family settlement is entirely separate from the issue of LTCG as computed under the Income Tax Act. The assessee s claim that in order to pay to his siblings, he had borrowed money from M/s. Fabrica De Gas Pvt. Ltd. and had paid interest to the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n loan from M/s. Fabrica De Gas Pvt. Ltd. The assessee against such loan had paid interest to the said company. Now the assessee had claimed deduction of this interest amount paid to that company i.e. M/s. Fabrica De Gas Pvt. Ltd. from the value of the LTCG. We are in conformity with the orders of the revenue authorities that this payment of interest has nothing to do with LTCG on the sale of the said capital asset and therefore such payment of interest cannot be claimed as deduction from the value of LTCG u/sec. 48 of the Act. We do not agree with the contention raised by the ld.AR for the assessee that it is the deduction claimed due to cost of acquisition since there is no cost incurred for acquisition, as the property had been gifted to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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