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2012 (12) TMI 752 - ITAT, CHENNAISale of land – Long Term Capital Gains - Whether repayment of the mortgage debt created by the assessee, is an expenditure incurred in connection with the transfer of mortgaged asset allowable under section 48(i) - Held that:- As decided in Salay Mohamad Ibrahim Sait Versus Income-Tax Officer And Another [1994 (5) TMI 18 - KERALA HIGH COURT] the amounts spent for discharge of the mortgage is not liable to be deducted in the computation of capital gains under section 48 of the Act. Assessee is not entitled to the deduction of the expenditure incurred to remove encumbrance created by the assessee himself - CIT(A) has fell in error in allowing the appeal of the assessee and in coming to the conclusion that transfer of property has taken place way back in the financial year 1988-89. Moreover, it was the liability of the assessee to redeem the mortgage. The assessee cannot claim the redemption amount as deduction under the unambiguous provisions of section 48 to arrive at the capital gains - Impugned order of the CIT(A) is set aside and allow the appeal of the Revenue - appeal of Revenue is allowed.
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