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2016 (1) TMI 861 - AT - Income TaxAddition on account of long term capital gain on transfer of development rights of undivided share in a property - Held that:- We observe that the authorities below have erred in holding that the assessee was the absolute owner of the property acquired by her through WILL. As stated earlier the assessee had only lifetime interest in the property with no right of alienation. It was only through a family arrangement that the assessee got absolute right over 1/4th share in the property. The Ld. AR of the assessee has stated at the Bar that the other 3 co-owners of the property have declared the long term capital gains in their respective return of income and the said amount has already been assessed to tax in the hands of respective co-owners. This fact has not been controverted by the Ld. DR. In the light of the facts discussed above, we are of the considered view that the assessee was only liable for long term capital gains on the considered received, i.e. ₹ 17.50 lakhs on transfer of her 1/4th share in the property. Thus, the second ground of appeal raised by the assessee is allowed in the aforesaid terms. Disallowance of the claim of exemption u/s.54F - Held that:- Transfer of any rights in the capital asset would constitute transfer within the meaning of section 2(47) of the Act and the assessee is eligible to claim benefit u/s. 54 on such transfer. In view of our above findings, we hold that the assessee is eligible to claim exemption u/s.54F of the Act. - Decided in favour of assessee.
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