Expenses to discharge mortgage debt created by previous owner allowable as cost of acquisition

Balram Shitaldas Ahuja Vs ITO (ITAT Pune) The assessee’s sole substantive grievance contested during the course of hearing challenges correctness of both the lower authorities action disallowing its mortgage expenditure of Rs.55 lakhs as cost of acquisition with the corresponding indexation. Distinction between the mortgage created by the previous owner which is discharged by the successor/assessee and the latter in his individual capacity –  There is a distinction between the obligation to discharge the mortgage debt created by the previous owner and the obligation to discharge the m...