https://www.taxtmi.com/caselaws?id=15634 The High Court of Madras ruled that the amount paid for discharging mortgage debts should not be deducted in computing capital gains arising from the transfer of property. The Court held that the burden of the mortgage was created by the vendor for his own benefit, making the amount paid for discharging the mortgage not deductible as expenditure in connection with the transfer. The Court emphasized that the consideration for the sale of a mortgaged property includes the equity of redemption and the amount needed to discharge the mortgage, regardless of whether the payment is made by the vendor or the buyer. en-us Tue, 13 Oct 1998 00:00:00 +0530 Wed, 26 Aug 2009 15:34:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15634 The High Court of Madras ruled that the amount paid for discharging mortgage debts should not be deducted in computing capital gains arising from the transfer of property. The Court held that the burden of the mortgage was created by the vendor for his own benefit, making the amount paid for discharging the mortgage not deductible as expenditure in connection with the transfer. The Court emphasized that the consideration for the sale of a mortgaged property includes the equity of redemption and the amount needed to discharge the mortgage, regardless of whether the payment is made by the vendor or the buyer. Case-Laws Income Tax Tue, 13 Oct 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15634