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2008 (7) TMI 1007 - HC - Income TaxClassification or categorization of the income - "income from long-term capital gain" OR "income from other sources" - amount in issue was paid to the appellant only to safeguard Mr. Dalvi from any claim(s) likely to be made against him by the person who had booked the flats through the appellant, since Mr. Dalvi did not construct the flats as agreed by him earlier - HELD THAT:- It is clear that the appellant has not received the amount in issue from Mr. Dalvi towards either acquiring or releasing or relinquishing any right or title or interest whatsoever, in the immovable property. The appellant was paid separately for relinquishing his interest in the immovable property, appropriate amount along with interest. Obviously therefore, the amount in issue cannot be said to be an amount received by the appellant as a compensation for relinquishing his interest in the immovable property and therefore cannot be considered under the head "Capital gain". We agree with the observation of the Tribunal that the amount in issue was paid to the appellant only to safeguard Mr. Dalvi from any claim(s) likely to be made against him by the person who had booked the flats through the appellant, since Mr. Dalvi did not construct the flats as agreed by him earlier. Thus, considering over all facts and circumstances of the case and the factual findings recorded by all the three lower authorities, we are unable to accept the contentions of the appellant, firstly that the amount in issue received by the appellant is not an income at all, as defined u/s 2(24) of the said Act and that alternatively this income of the appellant is required to be treated as "income from long-term capital gain" and not as "income from other sources" as contemplated by section 14 r/w section 56 of the said Act. We hold that all the three lower authorities were fully justified in treating the receipt of amount in issue by the appellant, not only as an income but also as income received by the appellant from other source as contemplated by section 14 r/w section 56 of the said Act and subject the same to taxation accordingly. The appellant has thus, failed to raise any question of law by the present appeal. The appeal is therefore dismissed, accordingly.
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