Hi Anil,
It seems you can sell your (temporarily) imported car in Canada. Canada Borders and Security team told me that I can sell my car. It was Transport Canada (another department) that thinks (& says) we shouldn't sell temporarily imported car unless you have a PR. One person from CBS told me to go to CBS office, explain the situation and ask them to talk to Transport Canada. The process is, you have to pay tax to CBS and they have to make sure it complies to Canada transport guidance rules. For this Transport Canada has to send a form with which you have to go to any auto inspection guy to get certificate stating that it adheres to the Canada law. Once that is done, you are free to sell your car.
I didn't do these steps. I found a buyer in US and exported my car to US buyer and paid the transport fee. Another option is getting visitor visa. You yourself can apply and get the visa and in visa interview you can state car selling as the reason. Once you have visa, you can take your car, US sales receipt (this will help US customs to give clearance) and ask US customs to issue a clearance form to sell your vehicle in US. With this form, title, odo reading, you should be able to register your car on the buyer's name. If you couldn't find any buyer, may be ask any of your friend to be buyer.
Note: In previous message, it was mentioned that we can't sell but there is an option to destroy. Those things are valid for display vehicles only which enter into Canada for some show stuff. Those vehicles should be taken back or be destroyed.
Thanks