AdvertisementGiju Purapadathil Mathai Vs CIT (Kerala High Court)The Kerala High Court dismissed the appellant’s challenge against a capital gains assessment arising from the sale of his property. The Department submitted that capital gains liability arises even where property is sold by an authority for recovery of debt. The Court observed that capital gains depend on whether the property was sold for a value higher than its acquisition cost. The capital gain that the assessee made was on the immovable property that belonged to him. Therefore, it is on the full price realised (less admitted deductions) that the capital gain and the tax thereon has to be computed. “