TaxTMI 
TaxTMI 
1997 (7) TMI 6
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.... judgment of the court was delivered by S. C. AGRAWAL J. --- Special leave granted. This appeal by the assessee is directed against the order dated July 25, 1984, passed by the Madras High Court in T. C. No. 145 of 1983 wherein the High Court on an application filed under section 256(2) of the Act declined to direct the Tribunal to state a case and refer the following questions of law to the....
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....questioned the computation of capital gains before the Appellate Assistant Commissioner and contended that the debts in respect of which mortgage had been executed were discharged by the buyer himself out of the sale proceeds, that the debts should be considered as increase in the cost of acquisition of the properties and that in any event the debts may be treated as improvement to the property or....
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....reated as " cost of acquisition " nor as " cost of improvement " made by the assessee. The Tribunal, therefore, held that the deduction of the capital gains was not justified. Since the Tribunal declined to refer to the High Court the questions referred to above, the assessee filed an application under section 256(2) of the Act before the High Court which has been rejected by the impugned order. T....
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....IT [1978] 111 ITR 880 and have held the said decision does not lay down the correct law in so far as it holds that where the previous owner had mortgaged the property during his lifetime the clearing off of the mortgage debt by his successor can neither be treated as " cost of acquisition " nor as " cost of improvement " made by the assessee. It has been held that where a mortgage was created by t....