Family Settlement Compensation Taxable as Capital Gain; Section 54 & 54EC Deductions Allowed

Dharampal Saghera Vs ITO (ITAT Chandigarh) ITAT Chandigarh held that compensation under a family settlement is liable to be assessed under the head ‘Capital Gain’ and not ‘Income from Other Sources’. Thus, deduction u/s. 54 and 54EC allowed and addition made by AO set aside. Facts- In the present case, the assessee had declared the amount of ₹1.75 crore in the course of a family settlement regarding House No. 55, Sector 9-A, Chandigarh, as long-term capital gain, claimed deductions u/s. 54 and 54EC of the Act. The amount was received in lieu of relinquishment of her long-standing pos...