Commissioner Of Income-Tax vs Attili N. Rao

The Supreme Court addressed the interpretation of Section 48 of the Income-tax Act regarding capital gains tax. The Court upheld the High Court's ruling that the amount realized from the sale of mortgaged property should be reduced by the mortgage debt owed to the State, affirming that the amount received by the assessee was not the full value of consideration. The Court concluded that the Appellate Tribunal's decision to compute capital gains based only on the net amount received after deducting the mortgage debt was correct, thereby dismissing the Revenue's appeal.