Capital Gain - Page 50

Mere Share speculation transaction not enough to treat capital gain as business profit

CIT Vs. Suresh R. Shah (Bombay High Court)

Tribunal after examining the evidence upheld the order of CIT(A) and concluded that the respondent was an investor in shares and entitled to be taxed under the head capital gains in respect of purchase and sale of shares. The Tribunal after examining the facts found that the respondent had not borrowed any funds for its investments and th...

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S. 2(47)(v) Possession need not necessarily be sole & exclusive

Assistant Commissioner of Income-tax Vs A. Ram Reddy (ITAT Hyderabad)

Owners have entered into an agreement for development of the property and certain rights were assigned to the developer who in turn had made the substantial payment and consequently entered into the property and thereafter if the transferee has taken any steps in relation to construction of the flats, then it is to be considered as transf...

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Budget 2012- Capital Gain Tax on Sale of Residential Property & Tax Planning

We know that investment in residential property or Flats is one of the common investment avenue for individuals. Here we are trying to summarise the tax implication on sale of residential property and tax planning to save tax on the Capital Gain arising on the sale of such property. ...

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Posted Under: Income Tax | ,

LTCG from sale of unlisted securities in case of NR / Private Equity Investors, to be taxed at 10%

Currently, long term capital gain arising from sale of unlisted securities in the case of Foreign Institutional Investors is taxed at the rate of 10% while other non-resident investors, including Private Equity investors are taxed at the rate of 20%. In order to give parity to such investors, I propose to reduce the rate in their case fro...

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Posted Under: Income Tax |

S.54B Deduction denied for failure to prove Agricultural Activity

Shri G.Ramkumar Vs. Deputy Commissioner of Income Tax (ITAT Chennai)

Where Land Revenue records showed no crop was cultivated and no agricultural activity was undertaken on the land owned by the assessee before sale thereof and assessee produced no evidence of user for agricultural purposes other than sketchy and vague statements of neighbours, denial of deduction by AO under section 54B deserved to be uph...

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S. 2(47) Conversion of tenancy into ownership is ‘transfer’

Income Tax Officer Vs Mrs Hajra I Memon (ITAT Mumbai)

Whether conversion of tenancy rights into ownership right falls under the realm of ‘transfer’ as envisaged in section 2(47) of the Act. The assessee was accepted as a tenant by the co-owners and as per the well settled law on this issue the tenancy cannot be equated with the ownership. The ownership is the bundle of rights but rights ...

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Uncertainty over exemption U/s. 54EC

The existing restriction in exemption u/s. 54EC is clearly an attempt to prevent home owners from fully enjoying the benefits. The treatment of long-term capital gains (LTCG) has been a contentious issue in recent years. Section 54EC of the Income-tax Act, 1961, exempts from taxation capital gains arising from transfer of a long term cap...

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Posted Under: Income Tax | ,

AAR Implements GAAR – Held Selective share buy-back as colourable transaction

In this case, there is no dispute that no dividend had been paid to any of the shareholders after 1.4.2003 on which date Section 115-O of the Act was introduced in its present form. The accumulation in the reserves was allowed to be increased considerably. It may be noted that the major shares are held by the ‘A’ group and only 1.76% ...

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Posted Under: Income Tax |

Due date for investment in property for S.54 exemption in case of revised return

ACIT Vs Smt. Sapna Dimri (ITAT Delhi)

Hon’ble Punjab & Haryana High Court in the case of CIT Vs. Miss Jagriti (supra) has held that sub-section (4) of section 139 provides the extension period of limitation as an exception to sub-sec. (1) of sec. 139 of the Act. Sub-sec. (4) was in relation to the time allowed to an assessee under sub-sec. (1) to file the return. Therefore,...

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Fair market value shall be deemed full value of consideration if actual consideration not attributable or determinable

Where in the case of a transfer, consideration for the transfer of a capital asset(s) is not attributable or determinable then for purpose of computing income chargeable to tax as gains, the fair market value of the asset shall be taken to be the full market value of consideration. Accordingly, it is proposed to insert a new provision (se...

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Posted Under: Income Tax |

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August 2020