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2012 (7) TMI 209 - AT - Income TaxTreating the income from transfer of the rights enjoyed by the assessee as capital receipt - AO stated that the income should be taxed under the head capital gain - Execution of will - dispute over property - assessee in the capacity of Administrator - Held that:- sale proceeds and advances were accumulated over the years and during the relevant year assessee received certain sums out of distribution of such sale proceeds as well as advances. The assessee had not sold any particular piece of land during the year and, therefore, Ld. CIT(A) has correctly held that the receipts would not be chargeable to income tax. In the absence of sale of a particular asset, revenue cannot assume that the sums are taxable on transfer of land. Liability of beneficiary to tax where administrator has paid tax - Held that:- once the taxes are paid by the estate, naturally, the beneficiary receiving any distribution of such sale receipts could not have been taxed again by the revenue, thus, it is clear that sale receipt against which conveyance deed was already executed and which were assessed in the hands of estate of EFD, were not subjected to tax again. constituting the transaction as adventure in the nature of trade there has to be some business relationship or some commercial features in the transactions. Since assessee was not owner of the properties, there is no question of transferring any rights in such properties. Further, the administrator could not distribute the proceeds from sale of the properties unless the administration was complete i.e. expenses and taxes of the estate were paid - mere receipt of sale proceeds by the assessee from the estate of EFD would not amount to any extinguishment of his rights and, accordingly, the receipt of the sum cannot be taxed under the head ‘capital gains'- the assessee had invested in 55 companies during the year and these figures, by no stretch of imagination, would lead us to a conclusion that the assessee is not the investor but a trader in shares - decided in favour of assessee.
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