Capital Gain tax liable on property sold by bank to recover loan given to group concerns

T. S. Hajee Moosa & Co Vs. ACIT (ITAT Chennai) The issue under consideration is whether Capital Gains will be applicable in case where Bank sold the property of group concern as it failed to repay the loan? In the instant case, the assessee availed loan from the Bank under the banner of group concerns by mortgaging its own property and thereafter, as the group concerns failed to repay the loan, the bank sold the property and recovered entire consideration. Thus, it could not be held that the assessee had not received any consideration directly or indirectly, which were liable to tax. As pe...