Sale of Rights in Flat Is Transfer of Capital Asset: ITAT Delhi Allows LTCL; Income Cannot Be Taxed as Other Sources

Anshu Dhawan Vs ITO (ITAT Delhi) The Delhi Bench ‘A’ of the Income Tax Appellate Tribunal, Delhi Bench allowed the assessee’s appeal for AY 2022-23 and held that consideration received on transfer of rights in a flat under an allotment/buyer agreement is taxable under the head “Capital Gains” and not as “Income from Other Sources”. The assessee’s late husband had booked a residential unit with Emaar MGF Land Ltd. in 2010. After his demise, the allotment was transferred in the assessee’s name. The assessee had paid substantial consideration to the developer and subsequently en...