https://www.taxtmi.com/caselaws?id=292644 Unpaid mortgage interest is treated as taxable only when actually realised or otherwise brought home as income; a mere debt due, even with compound-interest stipulations, does not by itself amount to accrued income. In an execution sale where the mortgagee purchases the mortgaged property, the taxable profit arises only when the sale becomes absolute on confirmation, not merely on decree or auction. Amounts deposited as security, prior encumbrance liabilities, and later delivery or mutation expenses are not deductible if they are contingent, arise after the profit accrues, or are not incurred in earning the income. Sale proceeds were not required to be appropriated differently on the facts stated, and the revenue's computation was upheld. en-us Wed, 07 Aug 1929 00:00:00 +0530 Sat, 02 Jan 2021 16:09:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=292644 Unpaid mortgage interest is treated as taxable only when actually realised or otherwise brought home as income; a mere debt due, even with compound-interest stipulations, does not by itself amount to accrued income. In an execution sale where the mortgagee purchases the mortgaged property, the taxable profit arises only when the sale becomes absolute on confirmation, not merely on decree or auction. Amounts deposited as security, prior encumbrance liabilities, and later delivery or mutation expenses are not deductible if they are contingent, arise after the profit accrues, or are not incurred in earning the income. Sale proceeds were not required to be appropriated differently on the facts stated, and the revenue's computation was upheld. Case-Laws Income Tax Wed, 07 Aug 1929 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=292644