Tax on Sale of land which was leased for a very long period

ACIT Vs M/s. Punjab Steel Rolling Mills (Baroda) Pvt. Ltd. (ITAT Ahmedabad) In this case Transfer of land for a long period to lessee could not be construed as actual transfer of the said land because by giving of lease, assessee did not lose its ownership right over the land. Since the land which was leased out to lessee did not cease to belong to the assessee, therefore, the ownership remained with assessee and accordingly the amount received for transfer of lease right held by assessee (lessee) was taxable under the head “Capital gains”. FULL TEXT OF THE ITAT JUDGMENT 1. This ap...