Tenant Eviction Payments Allowable in Capital Gains Computation: ITAT Delhi

Saroj Makan Vs ITO (ITAT Delhi) Payments made by assessee to occupants/tenants for vacating is allowable while calculating Capital Gain: ITAT Delhi The ITAT Delhi allowed the assessee’s appeal and held that payments made to occupants for vacating a property before its sale were deductible while computing capital gains. The assessee, a co-owner of a property in Karol Bagh, Delhi, sold her one-third share for ₹84 lakh and claimed deduction of ₹53 lakh paid to two occupants for handing over vacant possession. The Assessing Officer disallowed the claim, citing insufficient evidence, and the...