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

Advertisement 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....