Capital gains

Director/owner and company are two different entities. CG tax liability arises over owner, which cannot be set-off by any loss of company!

AGREE WITH SIR

Much more details are required to answer this question. Prima facie There is no capital gain to the director. Basically Capital gain to be taxed for any profits and gains arising out of transfer. In this case the amount of realisation in uts entirety is adjusted to the loan.

And director being a guarantor, is not liable to any capital gain. Further it has to be seen whether company has reimbursed the loan amount to the director for adjusting the loan amount against the property. Refer case law CIT Vs Smt. Thressiamma Abraham292/Del/2010 wherin it is held that there is no transfer as such and no capital gain arises for the assessee being a guarantor.

Thank you very much.  The decision in CIT Vs Smt. Thressiamma Abraham seems to be helpful.  Besides, Income Tax Appellate Tribunal decision in Delhi Additional Commissioner Of ... vs Glad Investments (P.) Ltd is also equally good.

Thank you once again.