COMMISSIONER OF INCOME TAX Vs. N VAJRAPANI NAIDU

JUDGEMENT

(1.) THE question referred to us at the instance of the Revenue is as follows :

(2.) THE Tribunal on further appeal took the view that the amount so paid by the vendee to the creditors of the vendor including the mortgagee, was deductible in the computation of capital gains, as in its view that amount which was the expenditure incurred wholly and exclusively in connection with the transfer under Section 48 of the Act was deductible. THE Tribunal held that what has to be kept in view was the concept of real income and if the assessee had lost part of the income because of the burden on the property, it is only the benefit that was actually received by the assessee that would go into the computation of capital gains.