Amount paid to clear mortgage on title of property is deductible u/s. 48(1)

ITO Vs Surendra Nath Gubbala (ITAT Visakhapatnam) ITAT Visakhapatnam held that amount paid to clear mortgage/encumbrances on title of property is rightly claimed as deduction under section 48(1) of the Income Tax Act. Accordingly, appeal of revenue is dismissed. Facts- Assessee had sold immovable property and out of the sale consideration an amount of Rs. 9 Crore was paid to clear mortgage/encumbrances on the title of the property. Assessee claimed the said amount under section 48(i) as wholly and exclusively in connection with transfer. However, AO disallowed the said claim. CIT(A) allowed t...