https://www.taxtmi.com/caselaws?id=255817 Sale proceeds from a capital asset were received in the assessees' personal bank account, placed in fixed deposits, and later said to have been used to settle bank dues of a connected company and firm. On the facts, no direct nexus was shown between the sale consideration and the later one-time settlement, and the repayment claim was traced to unsecured loans that had already been disbelieved in assessment. Payment of another entity's debt could not be treated as deductible expenditure or cost under section 48(1), consistent with the Supreme Court view that discharge of mortgage debt is not an allowable deduction. The claim was rejected and long-term capital gains remained taxable. en-us Wed, 14 Jan 2015 00:00:00 +0530 Thu, 30 Jun 2016 11:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=255817 Sale proceeds from a capital asset were received in the assessees' personal bank account, placed in fixed deposits, and later said to have been used to settle bank dues of a connected company and firm. On the facts, no direct nexus was shown between the sale consideration and the later one-time settlement, and the repayment claim was traced to unsecured loans that had already been disbelieved in assessment. Payment of another entity's debt could not be treated as deductible expenditure or cost under section 48(1), consistent with the Supreme Court view that discharge of mortgage debt is not an allowable deduction. The claim was rejected and long-term capital gains remained taxable. Case-Laws Income Tax Wed, 14 Jan 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=255817