ITAT Delhi Allows Capital Gain Deduction for Additional Land Acquisition Costs

Prime Maxi Promotion Pvt. Ltd. Vs ACIT (ITAT Delhi) In the case of Prime Maxi Promotion Pvt. Ltd. Vs ACIT, the Income Tax Appellate Tribunal (ITAT) Delhi ruled in favor of allowing capital gain deduction for additional compensation paid to vendors for land acquisition costs. The decision came after a thorough examination of the dispute arising from the sale of land and the computation of capital gains. The dispute revolved around the additional compensation of Rs. 25 lakhs paid by Prime Maxi Promotion Pvt. Ltd. to the vendors of the land during the financial year 2007-08. The company had acqui...