Case Law Details
ACIT Vs Ashwin S. Bhalekar Beamon Chambers (ITAT Mumbai)
Claim of the assessee that extinguishment of rights in the capital asset is a transfer of capital asset and capital gains and consequent allowance of claim of deduction under section 54 of the Act.
The facts clearly show that the extinguishment of assessee’s right in Flat No. 1703, 1704 and 1705 proposed building known as “shubh Residency”allotted vide allotment letter dated 20.06.2008 is actually extinguishment of any right in relation to capital asset in view of the provisions of section 47 of the Act and falls in the definition of transfer and hence, result in capital gain chargeable under section 45 of the Act. It is a fact that assessee held this right for more than 3 years for a reason that this flats were subject to allotment vide allotment letter dated 20.06.2008 and assessee received compensation of rightly deleted addition made by the AO in regard to disallowance of the claim of the assessee disallowing deduction of long term capital gain under section 54 of the Act on the premise that the compensation received is income from other sources. We noted that the CIT(A) has rightly allowed the claim of the assessee and we confirm the same.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal filed by the Revenue is arising out of the order of Commissioner of Income Tax (Appeals)-5, Mumbai [in short CIT(A)], in appeal No. IT/163/15-16/96/16-17 vide dated 16.08.2016. The Assessment was framed by the Asst. Commissioner of Income Tax, Central Circle-16(2), Mumbai (in short ACIT/ITO/ AO) for the A.Y. 2012-13 vide even date dated 20.03.2015 under section 143(3) of the Income Tax Act, 1961 (hereinafter ‘the Act’).
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