https://www.taxtmi.com/caselaws?id=21604 HC held that amounts paid by the assessee to redeem a mortgage constitute part of the "cost of acquisition" for computation of capital gains. The court reasoned that "property" includes the aggregate of rights, title and interests; where property is mortgaged, the mortgagee and owner hold distinct interests. By discharging the mortgage, the assessee acquired the mortgagee's interest, thereby enlarging its own bundle of rights. On subsequent sale, the assessee transferred both the original and the acquired interests. Such payment, being the cost of acquiring the mortgagee's interest, is deductible under s.48 read with s.55(2)(i). The question was answered in favour of the assessee and against the Revenue. en-us Wed, 26 Feb 1992 00:00:00 +0530 Wed, 10 Dec 2025 18:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21604 HC held that amounts paid by the assessee to redeem a mortgage constitute part of the "cost of acquisition" for computation of capital gains. The court reasoned that "property" includes the aggregate of rights, title and interests; where property is mortgaged, the mortgagee and owner hold distinct interests. By discharging the mortgage, the assessee acquired the mortgagee's interest, thereby enlarging its own bundle of rights. On subsequent sale, the assessee transferred both the original and the acquired interests. Such payment, being the cost of acquiring the mortgagee's interest, is deductible under s.48 read with s.55(2)(i). The question was answered in favour of the assessee and against the Revenue. Case-Laws Income Tax Wed, 26 Feb 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21604