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2017 (11) TMI 1211 - AT - Income TaxCapital gain tax - amount received by the assessee in terms of family settlement agreement - amount realized on surrender of occupancy right - Held that:- Admittedly in the case before us the assessee’s father late Mansukhlal M. Parekh was living in the said property since 1972 and the assessee, her brother and sister were also residing in that flat after the demise of her father till the settlement deed was effected. The property is not under any tenancy agreement. Assessee’s father nor the assessee were paying any rent nor any agreement has been entered into for tenancy of the property. The assessee entered into family settlement deed and by way of this family settlement the company sold the property and since assessee was under possession of the property lumpsum amount was paid for surrendering her possessory rights over the property. Therefore, since amount has been received by the assessee as part of family arrangement, in view of the above decisions there would not be any transfer of asset and it does not give rise to liability of capital gains tax. Therefore, in view of what is discussed above we hold that the amount received by the assessee in terms of family settlement agreement cannot be treated on account of transfer of capital asset and cannot be chargeable to tax under the head capital gains. Appeal of the assessee is allowed.
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