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2014 (1) TMI 1364 - AT - Income TaxDenial of deduction u/s 54F of the Act - Compensation received treated as income from undisclosed source Held that:- Once the assessee has entered into an agreement for the purchase of space which is specified and the place is also specified then it becomes the right of the assessee and such right is an asset which has a value -The gains arising on the transfer of such asset is liable to be treated only as LTCG - As long as the source of the receipt is not disputed, the same cannot be treated as undisclosed income of the assessee the fact that assessee has received the amount on the transfer of the right vested in him does not bring the receipt under the purview of the head "income from other sources", especially when the said receipt falls under the specific head "being income from capital gains" - "Income from other sources" is a residuary head - gains derived by the assessee on the transfer of the right to purchase the flat being liable to tax under the capital gains, the assessee would be entitled to benefit of deduction u/s 54F of the Act the order of the CIT(A) set aside and the AO is directed to treat the "receipt" on the transfer of the right to purchase the flat as LTCG and grant the assessee's benefit of deduction u/s. 54F of the Act Decided in favour of Assessee.
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