Hi ,
I require case laws on the following transaction :
Mr. X & Mr.Y are jointly holding property and they sold the property ,say, for Rs. 50 Crores.
Mr. X and Mr.Y were Director's in various companies in which for obtainig Loan from Bank , say Rs. 5 Crores , Personal Gaurantee was obtained from Director's.
Now in the current year Mr.X and Mr. Y has sold the property to some third party for Value of Rs. 50 Crores.Out of Rs. 50Cr amount of Rs. 5Crores was paid to Bank also directly by Bank.
While calculating the cost:
1. Can I include the Interest paid to Bank ,say Rs. 50 Lakhs , on the reason that if the Loan & Interest remains unpaid , the property cannot be sold.
2. Can i include the Principal Loan Repayment made by the Bank.
Please provide suitable Case Laws ( both For & Against )
CAclubindia
