Capital gain

Yes assesee is liable 

as the assets are sold by bank or liquidator to meet the loan amount borrowed by the assesee, the ultimate beneficiary is assesee, because the loan is getting credit with the amount received, so the capital gain liabilty would get fixed on the owner or assessee.

even if the assets of any third party guarantor is getting liquidated in the process, then also the owner of asset would get liable for Capital gain tax, irrespective of the fact that the amount is not received by assesee, 

Please can u send any case law regarding this

After getting his property back from third party when person wants to sell his property

then amount paid to third party can he consider as a cost acquisition or cost of improvement

that amount included Interest Portion also

as before the auction / sale there is sufficient time given to the asset owner to meet the liability paid, and after the auction / liquidation the amount so received is utilized to meet the repayment process of borrower 

however check your inbox, certain clarifications are put thereon for different situations 

Two points are merged here 

1) SARFEASI act 2002 under which the lander has to dispose the mortgage assets, under notice to borrowers to recover the dues. enough time provision is there to appear and negotiate with the lander, 

1a) in the said case law the asset holder has claimed back the asset and agreed to pay the amount with intrest, (original consideration is gone to meet up the borrowing)

1b) as the original consideration is gone to meet the borrowing, the capital gain tax was adhered thereon, and was part of the asset holder / borrower.

2) Claiming Back

claiming back is process initiated by the asset holder after paying the sum received by the bank and thereafter interest to the tune of 3.25 cr as mentioned by the order

2a) stamp duty is also recovered from 18.90 lacs but its not clear in order that the intrument of conveyence is excecuted or not, however payment of stamp duty means deemed execution of conveyence.

2b) now the property is fresh buy back, or cancellation of the deed of conveyence is not clear in the order, 

A) if there is a FRESH deed of conveyence is executed to get the property back then it would be fresh property as per the new deed, 

B) if there is cancellation of conveyence deed executed by lander, then date of aquisition is taken as old date, and some of expenses can be clubbed as development of property.

now coming  to capital gain point, 

in situation A capital gain has taken place, and tax is payable 

in situation B capital gain is under question, but department will seek all papers for study and therafter relif may be granted, 

Thanks a lot for your prompt response and reply....