Case Law Details
ITAT has held that right to receive a property is a valuable and a transferable right and falls within the ambit of “capital asset” and hence profit earned on sale of allotment right (without physical possession of the property) is taxable as Capital Gains and not as Income from other sources.
Full Text of the ITAT Order is as follows:-
This appeal of the assessee arises from the order of learned CIT(A)- XIX, New Delhi, vide order dated 21.06.2016 for the assessment year 2010-11.
2. The assessee has raised as many as eleven grounds of appeal. As a matter of fact the learned counsel for the assessee, Ms. Ananya Kapoor, Adv. press only ground nos. 3, 4 and 5 which pertained to one issue only and the said grounds are reproduced herein below.
“3. That the CIT(A) has erred in law and on facts in holding that no cognizance can be taken of the claim made by the assessee that sale of property be treated as ital gain and indexation benefit should be allowed to the assessee. The action of the CIT (A) in rejecting the claim is illegal and bad in law.
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