[aaykarbhavan] Fw: [aaykarbhavan:9166] Re: {VASHISHT AMRESH -CCC 21} Re: Query regarding capital gain [2 Attachments]

On Monday, 26 October 2015 2:43 PM, 'Dipak Shah' via aaykarbhavan <aaykarbhavan@googlegroups.com> wrote:

See the attached Judgments minutely.

See also Link you will find more Judgments. More than 50 Judgments.

https://www.google.com/search?q=Case+Law+on+Relinquishment+of+Right+in+Flat+a+Capital+Gain+%3F%3F%3F+India+Kanoon&ie=utf-8&oe=utf-8#q=Case+Law+on+Relinquishment+of+Right+in+Flat+a+Capital+Gain+???+Indiankanoon

On Monday, 26 October 2015 1:58 PM, "vashisht_2000@yahoo.com [ICAI_CIRC_MEERUT_CA]" <ICAI_CIRC_MEERUT_CA@yahoogroups.com> wrote:

 

Sir,

Gain from the relinquishment of the right to purchase a flat is a Long Term Capital Gain

Kolkata Income- tax Appellate Tribunal (the Tribunal ) in the case of Subhas Chandra Parmanandka  (the taxpayer ) held that income from the transfer of right to purchase a flat is taxable as capital

gains. Further,in case, the right was so held for more than 36 months, the gain will be treated as a long term

capital gain, thereby allowing relief from capital gains if invested in residential property

 

 

The Tribunal held that the receipts on the transfer of the right to purchase the flat was LTCG ,and was eligible for deduction under section 54F of the Act. The observations of the Tribunal were as follows:

·

Once the taxpayer has entered into an agreement, it becomes the right of the taxpayer and such right is an

asset which has a value. When surrendered or transferred after 36 months, gains if any, arising on the

transfer of such asset is liable to be treated only as LTCG.

·

Further, when an income falls under a specific head (income from capital gains)it cannot be taxed under

a residuary head(incomefrom other sources).

·

Since the source of the income is not disputed, the income cannot be treated as undisclosed income'.

The Tribunal concluded by reversing the decision of the AO and CIT(A) in favour of the taxpayer

by allowing the exemption under the Act regarding LTCG.

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Posted by: Dipak Shah <djshah1944@yahoo.com>

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