2001 (10) TMI 5

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..... to the assessee. The price that was realised therefor belonged to the assessee. From out of that price, the State deducted its dues towards "kist" and interest due from the assessee and paid over the balance to him - capital gains should be computed on the full price realised
Judge(s) : S. P. BHARUCHA., Y. K. SABHARWAL. and BRIJESH KUMAR. ORDER The High Court ([1998] 233 ITR 10) answered agai .....

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..... ellate Tribunal was justified in holding that the amount payable by the assessee in discharge of the mortgage debt to the Government on the sale of property was an expenditure incurred towards the cost of acquisition of the capital asset and deductible under section 48 of the Income-tax Act? 4. Whether on the facts and in the circumstances of the case and in law, the Appellate Tribunal was correc .....

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..... ithout the intervention of the court, to realise its dues. A sum of Rs.5,62,980 was realised at the auction. Thereout, the State deducted the amount of Rs.1,29,020 due to it towards "kist" and interest and paid over the balance to the assessee. The Revenue contended that the assessee was liable to capital gains tax on capital gain in the sum of Rs.3,70,970, having regard to the cost at which the .....

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..... and interest due to the State. In its opinion, as there was a clear charge or mortgage over the immovable property, the amount realised under the charge or mortgage was an amount which never reached the hands of the assessee but which reached the Government by overriding title. From out of the judgment and order of the Tribunal, the questions aforestated were placed before the High Court for its .....

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..... immovable property that belonged to him. Therefore, it is on the full price realised (less admitted deductions) that the capital gain and the tax thereon has to be computed. In these premises, the first question is answered in the negative and in favour of the Revenue. The other questions do not arise for consideration. The civil appeal is allowed. The judgment and order under appeal is set asid .....

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