Assessee received a certain amount from\u00a0 Uday Pratap Singh in the course of a family settlement regarding a property. Assessee declared the said amount as long-term capital gain and claimed deductions under sections 54 and 54EC. Assessing Officer held that since assessee lacked legal ownership, said amount could not be treated as consideration for transfer of a capital asset and treated it as a gift under section 56(2) and assessed it as income from other sources.\u00a0 On appeal, the Tribunal held that the assessee was in settled possession of property for decades, and the receipt was not gratuitous but for relinquishing that possession and claim, which were acknowledged in the civil suit and agreement. Possession and beneficial interest held by assessee over a prolonged period, her assertion of rights through legal proceedings, and receipt of consideration under a family settlement fall within the definition of “capital asset” under section 2(14), and the act of relinquishment is a “transfer” under section 2(47). Therefore, compensation received by assessee was liable to be assessed under the head ‘Capital gains’ and not ‘Income from other sources’. (AY. 2012-13)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 45: Capital gains-Family settlement-Capital asset \u2013Transfer-Gift-Relinquishment of possession-Civil suit-Compensation received assessable as capital gains and not income from other sources.[S. 2(14), 2(47), 54, 54EC, 56(2)] <\/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_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-60890","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fQ6","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60890","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=60890"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60890\/revisions"}],"predecessor-version":[{"id":60891,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60890\/revisions\/60891"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=60890"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=60890"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=60890"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}