Crypto Loan Interest = Cost of Acquisition; Deduction Allowed Despite Section 115BBH

Brijesh Poddar (Prop) Vs ITO (ITAT Agra) The ITAT, Agra Bench held that interest paid on borrowed funds used exclusively for acquiring virtual digital assets (cryptocurrency) forms part of “cost of acquisition”, and is therefore deductible while computing short-term capital gains u/s 115BBH. In this case, the assessee had borrowed funds and invested them entirely in cryptocurrency. The direct nexus between the loan and the investment was undisputed. Although the assessee had initially claimed the interest under IFOS u/s 57, he alternatively claimed that the interest should be capitalised a...