anshul gupta (a/c officer) (57 Points)
03 December 2017
Krishna Chaudhary
(Accountant)
(4531 Points)
Replied 03 December 2017
Respected,
The first thing to understand here is that why the Bank is selling the asset under auction sale; Whether it is under reverse charge mortgage or any other case of loan and insolvancy.
1) If it is under reverse charge than either legal hire or the bank have to pay the capital gain tax.
2) In other case of sale, The owner of property will pay the tax. Since he is using the income on sale property for reducing his laibility with bank. It will treated as use of income.( Case law AMITA BATRA V/S CIT 2009)
Regards.
anshul gupta
(a/c officer)
(57 Points)
Replied 03 December 2017
anshul gupta
(a/c officer)
(57 Points)
Replied 03 December 2017
Krishna Chaudhary
(Accountant)
(4531 Points)
Replied 04 December 2017
There will be no capital gain from this case.
CAclubindia
