#Section 48

The Supreme Court held that under Sections 46 and 48 of the Partnership Act, an outgoing partner in a partnership at will is entitled to the value of their share as on the date of liquidation of assets, not the date of dissolution. This ensures partners receive the benefit of any appreciation in asset value during the winding-up period.

The ITAT Delhi has held that an Assessing Officer cannot substitute a registered valuer’s report with an arbitrary, unsupported methodology to compute indexed cost of acquisition under Section 48. This reinforces the legal primacy of expert valuation in capital gains assessments and protects taxpayers from speculative adjustments by revenue authorities.

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.

ITAT Pune rules that Rs. 7.84 crore paid as compensation for cancelled share sale agreements qualifies as a deductible business expense under Section 48 of the Income Tax Act, provided the recipients have paid tax on the amount. The ruling clarifies that contractual compensation, even for failed transactions, is not a colourable device if properly taxed, offering relief to taxpayers in similar disputes.

The Bombay High Court enforced five foreign arbitral awards despite conflicting arbitration clauses, holding that party autonomy and commercial pragmatism prevail over technical defects under Section 48 of the Arbitration and Conciliation Act, 1996. The ruling underscores that Indian courts will not refuse enforcement merely on procedural discrepancies if the awards align with the parties' substantive intent. This decision reinforces the pro-enforcement stance under the Act, benefiting international commercial arbitration stakeholders.

ITAT Mumbai holds that charitable trusts can claim indexation benefit on long-term capital gains under Section 48 even while claiming exemption under Section 11, clarifying double deduction myths.