Assessee sold the property and included amount of interest paid on housing loan in cost of acquisition of property as indexed cost of improvement while computing the capital gains. The AO reduced amount of interest from cost of acquisition of property and determined the long term capital gains without including indexed cost of payment of interest. CIT(A) affirmed the order of the AO. On appeal the Tribunal held that  as per section 55(2) cost of acquisition would include only amount which had direct nexus with purchases of property and loan taken had no direct nexus with property purchases. Accordingly the order of the AO is affirmed. (AY. 2013-14)