Case Law Details
CIT Vs Smt. Laxmidevi Ratani And Ors. (Madhya Pradesh High Court)
Explore the legal implications of extinguishment of property rights in the CIT vs. Smt. Laxmidevi Ratani case at the Madhya Pradesh High Court. Uncover the details of the dispute, the compromise, and the tax implications. Understand the court’s ruling on whether the amount of Rs. 7,34,000 is considered a capital receipt subject to capital gains tax, as per Section 2(47) of the IT Act. Stay informed on the legal precedents cited, including the Bombay High Court decisions and the Supreme Court’s stance on property rights extinguishment.
1. This is an income-tax reference made under Section 256(1)of the IT Act at the instance of CIT (Revenue) by the Tribunal in RA Nos. 248, 249 and 250/Ind/1992, dt. 13th Sept., 1996, which arises out of ITA Nos. 1100, 1040 and 1041/Ind/1991, decided on 27th July, 1998, to answer following question of law :
“Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding the amount of Rs. 7,34,000 as capital receipt not exigible to capital gains tax as no transfer of any property was involved within the meaning of Section 2(47) of the IT Act, 1961 ?”
2. Facts stated in the statement of case drawn by the Tribunal need to be taken note of to answer the question referred.
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