Assessee, a partnership firm engaged in civil contracts, had its land compulsorily acquired by the Government. Compensation was first credited to assessee’s bank account and then transferred to sister concern\u2019s account to discharge its overdraft facility. Assessing Officer treated it as capital gain taxable in assessee\u2019s hands, noting assessee stood guarantor.\u00a0 CIT(A) affirmed the order of the Assessing Officer. On appeal, the assessee contended that no capital gain arose as income stood diverted by overriding title. Tribunal held that the assessee had claimed TDS credit and shown sister concern as a creditor in the balance sheet. Tribunal held that it was a case of application of income and not diversion by overriding title; therefore, capital gains were held to be taxable in the assessee\u2019s hands.\u00a0 (AY. 2013-14)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 45: Capital gains-Land-Compulsorily acquired-Guarantor-Overdraft facility-Compensation was first credited to assessee\u2019s account and then transferred to sister concern\u2019s bank account to discharge its overdraft-Application of income and not diversion by overriding title-Capital gains were taxable in assessee\u2019s hands.[S. 4] <\/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_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-60896","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fQc","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60896","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=60896"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60896\/revisions"}],"predecessor-version":[{"id":60897,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60896\/revisions\/60897"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=60896"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=60896"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=60896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}