Please clarify
“A”, “B” & “C” are three brothers. They have 3 immovable properties (D,E & F) under joint family. They move to court for partition. Court valued the property as follows:
Property D Rs. 55 lakhs
Property E Rs. 40 Lakhs
Property F Rs. 40 Lakhs
Total Property Value Rs. 135 Lakhs (Each will get Rs. 45 Lakhs as per court valuation)
“A” received property D and liable to pay Rs. 5 Lakhs each share to “B” & “C”.
“B” received property E and will also receive Rs.5 Lakhs from “A”
“C” received property F and will also receive Rs.5 Lakhs from “A”.
But “A” refuse to pay Rs. 10 Lakhs to “B” & “C” in front of court, so court decided to auction the property D and from auctioned amount of Rs. 50 Lakhs court directed the purchaser to pay Rs. 5 lakhs each share to “B” & “C” and the remaining balance to “A”.
Now the question is
1) Do capital gain on sale of immovable property D through court will arise?
2) If yes , who will bear the Capital Gain Tax?
CAclubindia
