INCOMETAX OFFICER, WARD-3(1), VISAKHAPATNAM vs. SURENDRA NATH GUBBALA, VISAKHAPATNAM

ITA 482/VIZ/2024Status: DisposedITAT Visakhapatnam10 October 2025AY 2020-2147 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the amounts paid by the buyer to clear mortgages and title disputes were indeed deductible expenditures in computing capital gains. The Tribunal relied on the principles of diversion of income by overriding title and real income theory.

What were the facts?

The assessee sold an immovable property and claimed certain amounts paid by the buyer to clear mortgages and title disputes as deductible expenditure for computing capital gains. The Assessing Officer disallowed these claims, treating them as part of the sale consideration.

What were the issues?

Whether payments made by the buyer to clear mortgages and title disputes are deductible expenses for computing capital gains, and if they constitute part of the sale consideration.

Which sections of the Income-tax Act were involved?

Section 48(1)

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Cases cited in this judgment(19)Show list

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Income Tax Appellate Tribunal, Visakhapatnam Bench

For Appellant: Dr. Aparna Villuri, DR

Heard together (2 matters)

I.T.A.No.482/Viz/2024
CO No.03/Viz/2025

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""त रवीश सूद, जे.एम./PER RAVISH SOOD, J.M.

The present appeal fi

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