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2015 (6) TMI 1061 - AT - Income TaxTransfer of TDR - Long term capital gain OR Income from other sources - levy of capital Gains Tax on society - Held that:- The assessee cannot be burdened with the taxes which he otherwise is not liable to pay under the law. Even a duty has also been cast upon the Income Tax Authorities to charge the legitimate tax from the tax payers. They are not there to punish the tax payers for their bonafide mistakes. In view of our above observations, it is held that the assessee is not liable to pay Capital Gains Tax, though originally he had subjected himself to the said tax as per his return of income. The AO is directed to process the claim of refund in this respect as per provisions of the law. In this appeal, the income received by the assessee on transfer of TDR has been taxed by the lower authorities as income from other sources. In view of our above observations, the receipt on transfer of TDR and in terms of the consent terms decree of the Court is though capital receipt but can not be subjected to Capital Gains Tax . The said receipt therefore can not be taxed even under the head ‘Income from other sources’. - Decided in favour of assessee.
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