An assessee from South India has purchased ‘X’ acres of land during the period 1981-1987 in
Whether (1) Travel expenditure, (2) Penalty, and (3)Maintenance charges paid in relation to an asset can be claimed as a deduction in computing the capital gain from the sale of such an asset.
Kindly quote with necessary legal provisions/caselaws
Generally following expenses are allowed:\
Legal fee
brokerage
commission
payments to parties to relinquish any right in property
tenency rights compensation
(expenses incurred in your case would be difficult to claim)
anyways wait for other members to respond, sorry i do not have any case law, but list mentioned above can be claimed based on various decisions only.
CAclubindia
