https://www.taxtmi.com/caselaws?id=6050 Whether capital gains on auction sale of mortgaged immovable property must be computed on the net amount after reducing the mortgagee-State's interest. The SC held that the auction transferred the assessee's immovable property, and the entire sale consideration legally accrued to the assessee; the State's deduction of its dues (kist and interest) from the proceeds was merely an application of the assessee's money and did not diminish the "full value of consideration" for capital gains purposes. Accordingly, capital gains and consequential tax were directed to be computed on the full sale price realised, subject only to admitted deductions, and the contrary view of the Tribunal and HC was set aside. en-us Thu, 11 Oct 2001 00:00:00 +0530 Mon, 22 Dec 2025 21:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6050 Whether capital gains on auction sale of mortgaged immovable property must be computed on the net amount after reducing the mortgagee-State's interest. The SC held that the auction transferred the assessee's immovable property, and the entire sale consideration legally accrued to the assessee; the State's deduction of its dues (kist and interest) from the proceeds was merely an application of the assessee's money and did not diminish the "full value of consideration" for capital gains purposes. Accordingly, capital gains and consequential tax were directed to be computed on the full sale price realised, subject only to admitted deductions, and the contrary view of the Tribunal and HC was set aside. Case-Laws Income Tax Thu, 11 Oct 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6050