2000 (11) TMI 29

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....e Tribunal held that the mortgage by conditional sale is a mortgage and is not a sale which is liable to be cancelled at the option of the mortgagor at a subsequent date. A mortgage once created remains a mortgage unless it is foreclosed or redeemed. There was no fore closure of the mortgage during the assessment year. The foreclosure was an event which occurred in the subsequent year. The Assessi....

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.... by deposit of title deeds and anomalous mortgage. Clause (c) of section 58 deals with mortgage by conditional sale. It reads thus: "(c) Mortgage by conditional sale.--Where the mortgagor ostensibly sells the mortgaged property-- on condition that on default of payment of the mortgage-money on a certain date the sale shall become absolute, or on condition that on such payment being made t....

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....ion regarding repayment is not fulfilled. Ostensible sale in case of mortgage by conditional sale is in reality a mortgage, subject to the conditions set out in the document. The mortgagee cannot claim right of ownership on the date of the execution of the mortgage by conditional sale. It is only if and when the condition embodied in the document is not complied with by the mortgagor, that the mor....