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2016 (1) TMI 448 - AT - Income TaxLong term capital gain in respect of leasehold rights - Held that:- The statutory definitions in other legislations explained that tenancy right includes lease right. Thus tenancy right is a wider and broader term capable of conceiving similar and such rights. Accordingly, we do not find any infirmity in the order of lower authorities for taxing the capital gains earned on transfer of leasehold rights. So far as expenses incurred on improvement is concerned, we direct the A.O. to consider the same as claimed by the assessee while computing capital gains u/s.45 of the Act. Penalty u/s.271(1)(c) - treatment to the leasehold rights as different from tenancy rights - Held that:- There was full disclosure and no suppression of fact. The bonafide explanations supported by judicial pronouncements were also furnished by the assessee for treating the leasehold rights as different from tenancy rights so as to exclude the same from the taxable capital gains. Accordingly, we are of the opinion that it is not a fit case for impose the penalty u/s 271(1)(c) of the Act.
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