Capital gain

This query is : Open

Aniket Shavdia (Querist)
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05 December 2011 The car is registered in the name of the director. However the car is being used by the Company and the purchase of car is also financed by the company.

Now during the sale of car, the capital gain will be taxed in whose hands?
a. Company or
b. Director

Kindly provide some supportings (For E.G. Case laws or sections)

Guest

Guest (Expert)

06 December 2011 The Capital Gains arising therefrom will be charged in the Name of the Owner. It is inferred from your query that the Director is the Owner of the Car. Hence, Capital Gains will accrue to the Director.

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Aniket Shavdia

Aniket Shavdia (Querist)
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14 December 2011 Thank you sir for your valuable response

The thing is that all the risks & rewards are used by the company. Also Depreciation on Car is claimed by the Company.
Also to claim depreciation it need not be necessary that the owner should be a registered owner.
So now capital gain will be taxed in whose hands?