Q. Under which of the following circumstances may ‘capital gains ‘arise?
1. when there is an increase in the sales of a product
2. when there is a natural increase in the value of the property owned.
3. when you purchase a painting and there is a growth in its value due to increase in its popularity.
Select the correct answer using the codes given below:

[A] 1 only

[B] 2 and 3 only

[C] 2 only

[D] 1, 2 and 3

Answer: B