Dismissing the appeal the Court held that the mortgage is created by the owner after he has acquired the property. The clearing off of the mortgage debt by him prior to transfer of the property would not entitle him to claim deduction under S.48 because in such case he did not acquire any interest in the property subsequent to his acquiring it. (AY. 1995 -96)
TMT. D. Zeenath v. ITO (2019) 413 ITR 258/ 178 DTR 11 / 263 Taxman 569 /2020) 313 CTR 676(Mad.)(HC)
S. 48 : Capital gains–Computation–Guarantee to loan-Mortgage- No diversion of income by overriding title-No part of cost of clearing guarantee could be deducted in computing capital gains .[ S. 45]