Delhi HC Allows Capital Gains Deduction for Settlement Payment Made to Clear Prior Sale Agreement

Kaushalya Devi Vs CIT (Delhi High Court) The Delhi High Court considered an appeal under Section 260A of the Income Tax Act, 1961, concerning Assessment Year 1994-95. The dispute related to whether ₹25,00,000 paid by the assessee to a prospective purchaser under an earlier agreement to sell could be deducted under Section 48(i) while computing long-term capital gains arising from the subsequent transfer of the same property. The assessee had purchased the immovable property in 1971 for ₹30,000. In 1989, she entered into an agreement to sell the property to Anil Kumar Sharma for ₹15,00,00...