Examination in Capital Gains Computation

The Bangalore Bench of the Income Tax Appellate Tribunal examined the computation of long-term capital gains arising from the sale of residential property by a non-resident Indian and considered the allowability of travel expenditure, onetime maintenance deposits, utility deposits, and housing loan interest. 

The Tribunal held that mandatory maintenance and utility deposits formed part of the cost of acquisition and that housing loan interest, which had not been claimed earlier under the head “Income from House Property”, was eligible to be included in the cost of acquisition with indexation benefit.

However, the claim relating to travel expenditure was restored to the Assessing Officer for fresh verification to determine whether such expenditure was incurred wholly and exclusively in connection with the transfer. The Tribunal also condoned a delay of 737 days in filing the appeal.