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2018 (5) TMI 1087 - AT - Income TaxLong term capital gain determination - relinquishment of right in property to be treated as transfer within the meaning of section 2(47) - gift made in the family as a family arrangement - Held that:- The assessee has gifted her 50% share in the property in favour of her brother in law in pursuance of family arrangement between the family members for acquiring separate property for each family member. The said transactions cannot be considered as transfer within the definition of section 2(47) of the Income Tax Act, 1961. Although the assessee has received cash gift of ₹ 68,50,000/- from the person who received gift from the assessee, such an arrangement is as per the family settlement between the members. Therefore, the AO was erred in bringing the above two gift transactions within the purview of definition of transfer as defined under section 2(47) of the Income Tax Act, 1961. CIT(A) without appreciating the facts simply confirmed additions made by the AO. Direct the AO to delete additions made towards computation of long term capital gain for relinquishment of 50% share in property by way of gift. - Decided in favour of assessee.
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