Panaji ITAT permits deduction of advisory costs for unlisted share transactions

The Income Tax Appellate Tribunal bench in Panaji deleted a tax disallowance worth eighty-three lakh forty-seven thousand rupees concerning advisory and execution expenses. These specific costs were directly connected with the sale of unlisted shares by the assessee and were claimed during tax computation.

This ruling confirms that expenses incurred directly in relation to transferring unlisted shares qualify for proper deduction under Section 48 of the Income Tax Act. Tax practitioners evaluating capital gains on share sales can reference this decision when assessing similar advisory fee deductions during assessment proceedings.

Taxpayers and practitioners should review their computation of capital gains under Section 48 to ensure eligible transaction-related advisory costs are appropriately claimed. Further developments will depend on subsequent departmental scrutiny or appellate actions by tax authorities.