07 January 2016
if person has purchased land and incurred expenses on construction from taking loan fron Bank After that he was not able to pay Bank loan then Bank has sold his property to third person without his approval
He Went for Supreme Court and won the Case and Court has given order to pay Lumsum amount to Third party to get back his Property.
now after that he has sold his property to other person
my query is this 1 when sales of asset has made 2 whatever he has paid to third party to get back his property it will be treated selling expenses....?????????/
if there will be two time sale of transfer one when bank sold property to Third person second when person got back his property and sold to third party
1 who will liable for capital gain First time 2 can we take amount paid to third party as a COA on Second time
09 January 2016
In my view the period of holding of the property is from the date of original purchase of property to the date of transfer made by him. The amount paid to third party is similar to repayment of loan. Hence, he cannot deduct the same from the property or consider it as cost of acquisition.
As the transfer was superseded by the Supreme court order, it cannot be treated so.
CAclubindia
