Held that the Tribunal had recorded that the terms of compromise indicated that the payment of Rs. 2.66 crores was in connection with the transfer of capital asset. The compromise terms stated that the parties had amicably agreed upon certain terms and the assessee had paid the amount. The DHFL had waived all indemnities, liabilities and claims. The payment of Rs.2.66 crores had nexus with the transfer of shares as per the terms of compromise. It was deductible. (AY.2004-05)
CIT v. Ing Vysya Bank Ltd. (2022) 448 ITR 94 (Karn.)(HC)
S. 48 : Capital gains-Computation-Sale of shares-Expenditure incurred in connection with transfer of capital asset-Sale Of Shares-Amount paid in terms of agreement-Allowable as deduction. [S. 45]