After demise of father the assessee filed a suit for partition and separate possession of his share of properties belonging to father Assessee received from his mother a consolidated amount of Rs. 1.60 crores as per decree of Court in full satisfaction of his right, title and interest in properties of family and thus litigation came to an end. Court passed a decree in terms of comprise agreement between parties. The\u00a0 Assessing Officer held that\u00a0 all properties of father were given to mother under will and belonged to her absolutely. The assessee had no rights whatsoever over property and therefore, sum of Rs.1.60 crores received by assessee from his mother was in nature of income chargeable to tax in hands of assessee. On appeal Commissioner (Appeals) held that said receipt fell within category of income specified in section 56(2)(vii)(a) of the Act.\u00a0 On appeal the Tribunal held that all items of suit properties were bequeathed to assessee\u2019s mother under will could not be basis to hold that assessee did not have any rights whatsoever.\u00a0 Assessee had a right to question validity of will and had in fact filed suit for partition and separate possession of his share of suit properties. Therefore, sum received by assessee for giving up his rights to contest will could not be said to have been received without consideration and hence, could not have been brought to tax under section 56(2)(vii)(a) of the Act. The Tribunal also held that\u00a0 the sum received by assessee to give up his rights to contest will was not in nature of revenue receipt, but was a capital receipt not chargeable to tax, thus, sum so received could not be brought to tax as capital gain under section 45. \u00a0(AY. 2012-13)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 56 : Income from other sources-Gift-Capital or revenue-Consideration-Suit properties-Sum received by for giving up his rights to contest will could not be said to have been received without consideration and hence, could not have been brought to tax-Sum received is capital receipt cannot be taxed as capital gains. [S. 4, 45, 56(2)(vii)(a)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-31164","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-86E","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/31164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=31164"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/31164\/revisions"}],"predecessor-version":[{"id":33238,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/31164\/revisions\/33238"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=31164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=31164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=31164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}