https://www.taxtmi.com/caselaws?id=465118 Where sale proceeds are compulsorily applied to discharge an encumbrance that must be cleared to complete the transfer, the amount so appropriated is not part of the transferor's real consideration for capital gains purposes. On the facts noted, the property was mortgaged for a sister concern's borrowing, the bank released the property only on receipt of the sale proceeds, and the amount was applied towards repayment and related dues. The amount was therefore treated as excluded from sale consideration and, in the alternative, as expenditure incurred wholly and exclusively in connection with the transfer under section 48(1) of the Income-tax Act, 1961, with the issue decided in favour of the assessee. en-us Thu, 17 Apr 2025 00:00:00 +0530 Sat, 06 Dec 2025 18:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465118 Where sale proceeds are compulsorily applied to discharge an encumbrance that must be cleared to complete the transfer, the amount so appropriated is not part of the transferor's real consideration for capital gains purposes. On the facts noted, the property was mortgaged for a sister concern's borrowing, the bank released the property only on receipt of the sale proceeds, and the amount was applied towards repayment and related dues. The amount was therefore treated as excluded from sale consideration and, in the alternative, as expenditure incurred wholly and exclusively in connection with the transfer under section 48(1) of the Income-tax Act, 1961, with the issue decided in favour of the assessee. Case-Laws Income Tax Thu, 17 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465118