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2019 (1) TMI 262 - AT - Income TaxCapital gain for termination of lease and vacating the premises - Subsequently, the assessee claimed before the AO that it was for sale of marbles and what was received is an advance - Held that:- The claim of the assessee that what was received is for vacating the premises appears to be true. Therefore, the amount received for termination of lease and vacating the premises is a capital gain and the assessee admittedly offered the same as a capital gain and paid the taxes. In those circumstances, this Tribunal is of the considered opinion that there is no justification for the authorities below to assess the entire receipt of ₹ 45,00,000/- as income from “other sources”. Even if undertake the receipt as advance for sale of the marbles, this Tribunal is of the considered opinion that unless and until the sale of marbles is concluded by deliver of the marbles, the advance cannot be treated as income of the assessee during the year under consideration. Moreover, what was to be assessed as income is only the profit element embedded in it and not the entire sale consideration. Assessing the entire amount of ₹ 45,00,000/- as income from “other sources” is not correct. Accordingly, the order of both the authorities below are set-aside and addition of ₹ 45,00,000/- is deleted. - Decided in favour of assessee.
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