Interest Paid on Borrowings to Acquire Property deductible from Sale Consideration

The ITAT directed that interest paid on borrowings to acquire property is deductible from the sale consideration for computing capital gains. The case involves interpreting provisions under the Income Tax Act regarding deductions allowable from capital gains. The tribunal emphasized that interest directly attributable to acquisition of an asset should be considered for deduction while computing capital gains, overturning the lower authorities' decisions. This ruling clarifies the treatment of interest expenses in capital gains calculations, providing guidance for taxpayers and professionals involved in property transactions.