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2012 (5) TMI 316 - AT - Income TaxExchange of residential flat - exemption from capital gains u/s 54 - held that:- the assessee had exchanged old flat with new flat to be constructed by the builder under development agreement which amounts to transfer under section 2(47) of the Act. - Thus, the only other condition which is required to be satisfied is that assessee either purchases a new residential flat within the prescribed limit or constructs a new residential flat within a period of 3 years from the date of transfer. The acquisition of a new flat under a development agreement in exchange of the old flat amounts to construction of new flat. - Decided in favor of assessee. Taxability of compensation of Rs. 7,01,460/- received by the assessee for alternate accommodation during the period of construction of property for 18 months. - held that:- displacement compensation is not related to any capital asset. - he compensation had been paid in connection with the alternate accommodation given to the assessee to facilitate construction of the flat. Since the actual rent paid by the assessee for the alternate accommodation was lower than the amount received, there was net income to the assessee which has been rightly taxed as income from other sources. - Addition confirmed - Decided against the assessee.
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