https://www.taxtmi.com/caselaws?id=190557 Open payments are ordinarily appropriated first to outstanding interest unless the parties agree otherwise. Here, the mortgage deed expressly required instalments to be credited first towards interest and only the balance towards principal, so the mortgagee was bound by that contractual allocation. The mortgagee could not lawfully appropriate the receipts towards principal before taking possession contrary to the deed, and the tax authorities were entitled to proceed on that basis. The issue was answered against the assessee and in favour of the Revenue. en-us Fri, 28 Feb 1936 00:00:00 +0530 Sat, 18 Feb 2017 16:31:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=190557 Open payments are ordinarily appropriated first to outstanding interest unless the parties agree otherwise. Here, the mortgage deed expressly required instalments to be credited first towards interest and only the balance towards principal, so the mortgagee was bound by that contractual allocation. The mortgagee could not lawfully appropriate the receipts towards principal before taking possession contrary to the deed, and the tax authorities were entitled to proceed on that basis. The issue was answered against the assessee and in favour of the Revenue. Case-Laws Income Tax Fri, 28 Feb 1936 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=190557