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The Tax Publishers DCIT v. Fritz D. Silva [ITA No. 236/Mum/2010, dt. 8-5-2015] : 2016 TaxPub(DT) 2117 (Mum-Trib) Interest paid for acquiring shares, whether eligible to be forming cost of acquisition and eligible for indexation *Facts:* Assessee had acquired some shares with borrowed funds such interest was added to the cost of the shares and when sale happened claimed indexation on the whole cost including the interest. AO disallowed the interest as a cost of acquisition. CIT(A) allowed the same. On appeal by the department -- Held that interest formed part of the purchase consideration thus was eligible for indexation and deduction as cost. CIT v. Mithilesh Kumari 92 ITR 09 (Del) Trishul Investments Ltd. 305 ITR 434 (Mad)

The Tax Publishers

DCIT v. Fritz D. Silva [ITA No. 236/Mum/2010, dt. 8-5-2015] : 2016 TaxPub(DT) 2117 (Mum-Trib)

Interest paid for acquiring shares, whether eligible to be forming cost of acquisition and eligible for indexation

Facts:

Assessee had acquired some shares with borrowed funds such interest was added to the cost of the shares and when sale happened claimed indexation on the whole cost including the interest. AO disallowed the interest as a cost of acquisition. CIT(A) allowed the same. On appeal by the department --

Held that interest formed part of the purchase consideration thus was eligible for indexation and deduction as cost.

CIT v. Mithilesh Kumari 92 ITR 09 (Del)

Trishul Investments Ltd. 305 ITR 434 (Mad)