No deduction u/s 48 for clearing off mortgage created by assessee prior to transfer of land

Smt. D. Zeenath Vs ITO (Madras High Court) Conclusion: Assessee created mortgage after acquiring the property and clearing off of the mortgage debt prior to transfer of the property would not entitle her to claim deduction under section 48 as there was only a mere application by the owners themselves of the profits realized on the sale of land towards the discharge of loan obligations of same firm. Held: Assessee along with two other co-owners had originally purchased a land. The property had been offered as collateral security in a loan obtained from Bank and assessee and the other two co-own...