LTCG on land co-owned cannot be assessed in the hands of single owner

E. Murugan Vs ITO (ITAT Chennai)

ITAT Chennai held that assessment of Long Term Capital Gain entirely in the hands of assessee instead of all the co-owners of the land is unsustainable in law. LTCG should be assessed in the exact proportion to the extent the land belongs to each such co-owners.

Facts-

The only issue in this appeal of the assessee is assessment of Long Term Capital Gain on compulsory acquisition of land by Government under the Tamil Nadu Highways Act, 2001 (Act 34/2002) in the hands of the assessee alone instead of all the co-owners. There are many aspects to this issue those are I) that the land belongs to many co-owners and assessment cannot be made on the compulsory acquisition of this land in the hands of the assessee alone II) that the land acquired was compulsory acquisition under Tamil Nadu Highways Act, 2001 (Act No.34/2002) and it falls under the Right to Fair compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RECTLAAR Act).

Conclusion-

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