Ramesh Wasudeorao Nawsalkar Vs DCIT (ITAT Nagpur)
Registration Charges Paid by Seller Allowed as Deduction in Capital Gains – Agreement Terms Prevail Over General Stamp Law – ITAT Nagpur
The assessee claimed deduction of ₹5.47 lakh towards registration charges reimbursed to purchasers while computing capital gains on sale of plots. AO and CIT(A) disallowed the claim alleging that normally such expenses are to be borne by buyers and payment was made in cash.
ITAT observed that the registered sale deed clearly stipulated that registration expenses would be borne by the seller. Tribunal held that, though generally buyers bear such costs under stamp law, parties can contract otherwise, and Revenue failed to bring contrary evidence or verify from purchasers. Since documentary evidence supported the assessee’s claim, the registration charges were held allowable as transfer expenses and disallowance was deleted. Appeal allowed.
FULL TEXT OF THE ORDER OF ITAT NAGPUR
This appeal at the instance of the assessee is directed against order of Ld. ADDL/JCIT (Appeals)-1, Chennai [“CIT(A)”], dated 25/08/2025 passed u/s. 250 of the Income Tax Act, 1961 (for short, ‘the Act’) which is arising out of assessment order dated 15.12.2016 passed u/s. 143(3) of the Act for the Assessment Year 2014-15 (A.Y.).
