Topic

Section 48 Income Tax Act

2 articlesLatest April 2026
Section 48 IT Act | Compensation for Cancelled Share Sale Agreement Deductible as Business Expense if Taxed in Recipients' Hands : ITAT Pune
Case Law Analysis
|Income Tax Appellate Tribunal

Section 48 IT Act | Compensation for Cancelled Share Sale Agreement Deductible as Business Expense if Taxed in Recipients' Hands : ITAT Pune

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.

Section 48 Income Tax Act | Proportionate IPO Expenses Deductible for Selling Shareholders as Transfer-Related Costs : ITAT Mumbai
Case Law Analysis
|Income Tax Appellate Tribunal

Section 48 Income Tax Act | Proportionate IPO Expenses Deductible for Selling Shareholders as Transfer-Related Costs : ITAT Mumbai

ITAT Mumbai rules that selling shareholders can claim proportionate IPO expenses as deductible under Section 48 of the Income Tax Act, provided the expenses are incurred wholly and exclusively for the share transfer. This clarifies the tax treatment of Offer for Sale (OFS) costs, impacting shareholders and tax practitioners dealing with capital gains computations.

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