Assessee obtained loan from EDCO, during financial year 2007-08 for purpose of acquisition of property. Thereafter, assessee obtained another loan from India Bulls by mortgaging same property to clear loan taken from EDCO and claimed interest expense as cost of acquisition with due indexation.  Assessing Officer while computing capital gains with respect to sale of said land disallowed interest claim. CIT(A) affirmed the order of the AO. On appeal the Tribunal held that since interest paid in respect of property on loan amount used by assessee for substituting housing loan had a direct nexus with acquisition of property, same was allowable deduction in terms of section 48 and it was required to be reduced from sale consideration received by assessee, being one of components of cost of acquisition.  (AY. 2012-13)