Tax on Sale of mortgaged property in discharge of loan taken

ITO Vs Late Shri B. Kailasam (ITAT Chennai)

Since availing a loan itself is consideration and therefore, constructive benefit was very well accrued to the assessee when the loan was availed by the concerned company, which was owned partly by the assessee. Since, the mortgaged property was sold in discharge of the mortgage created by the assessee himself, belonged to the assessee, thus, the price realized there from also belonged to the assessee and capital gain was very much warranted on the full price (less admissible deduction). Howev

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