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2018 (4) TMI 432 - AT - Income TaxComputation of long term capital gain - Property acquired by assessee through memorandum of family arrangement cum compromise deed - cost of acquisition - Disallowing of Index Cost for calculating Long Term capital Gains - Held that:- It is settled law that when parties entered into family arrangement, the validity of the family arrangement is not to be judged with reference to whether the parties who raised disputes or rights or claimed rights to certain properties had in law any such right or not. A perusal of the record in the present case before me, establishes that a dispute was there in the family as per memorandum of family arrangement cum compromised deed and family arrangement was arrived at was documented much prior to the sale of the property in 2011. The family arrangement was made in 2004. In view of these, treat the family arrangement as genuine and distribution of sale consideration according to the same is to be assessed as capital gains. The consequential benefits and deductions are to be allowed as per law. Accordingly, the appeal of the assessee is allowed.
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