No deduction for payment for discharge of outstanding loan liability

Perfect Thread Mills Ltd Vs. DCIT (ITAT Mumbai)

No deduction allowable when creditor gets overriding title and payments are directly paid to creditors without routing through owner’s accounts

Conclusion:  Since there was no diversion of sale proceeds by overriding title, but on the contrary, there was only a mere application of the sale proceeds realised on sale of plots towards the discharge of outstanding loan liability of assessee thus, the consideration from sale of property to the extent o

Please become a Premium member. If you are already a Premium member, login here to access the full content.