Grant of redevelopment rights on a property amounts to transfer of property, and gives rise to capital gains, liable to tax and provisions of Sec 50C are invokable in such a case

The owners granting the right, authority and power to develop the property in favour of the developers is considered as transfer of the land and building and thus liable to capital gain tax and section 50C of the Act is applicable Recently ITAT Mumbai held that in the case of Chiranjeev Lal Khanna Vs. ITO (ITA No. 6170/Mum/2008) held that considering the facts of the case and clauses in the agreement, the taxpayer has transferred land and building to the developer would be chargeable to tax as capital gains. Accordingly, Section 50C of the Income-tax Act, 196 1(the Act) would be applicable. Fa...