Case Law Analysis
|Income Tax Appellate Tribunal
Section 48 IT Act | Tenant Eviction Payments Deductible from Capital Gains if Proven Genuine via Bank Evidence: ITAT Delhi
The ITAT Delhi has ruled that payments made to tenants for vacating a property before sale can be claimed as part of the cost of acquisition under Section 48 of the Income Tax Act, provided they are substantiated by contemporaneous bank records-even without a registered surrender deed. This clarifies a critical path for property sellers to reduce taxable capital gains, especially in high-value urban real estate transactions where tenant rights complicate clear title transfer.