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TMI BlogThe ITAT examined whether the takeover of immovable properties by a financial institution from the...The ITAT examined whether the takeover of immovable properties by a financial institution from the guarantor, against loans granted to companies where the guarantor stood as guarantor, would result in taxable capital gains for the guarantor. The sale deed did not mention enforcement of the guarantee clause but cited repayment of loans as the reason. Despite mortgages earlier, the properties were sold free from encumbrances. The ITAT held that the transaction met the definition of 'transfer' u/s 2(47), attracting Sections 45 and 48 for computing capital gains, which the authorities rightly did. The ITAT rejected the assessee's contention of compulsion, noting the short timeframe for loans turning bad, the guarantor's directorship and shareho..... ..... X X X X Extracts X X X X X X X X Extracts X X X X
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