{"id":62116,"date":"2026-07-16T12:32:13","date_gmt":"2026-07-16T07:02:13","guid":{"rendered":"https:\/\/itatonline.org\/digest\/sherlyn-dias-mrs-legal-heir-of-late-mrs-dorothy-lawrence-pereira-v-ito-mum-trib\/"},"modified":"2026-07-16T12:32:13","modified_gmt":"2026-07-16T07:02:13","slug":"sherlyn-dias-mrs-legal-heir-of-late-mrs-dorothy-lawrence-pereira-v-ito-mum-trib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/sherlyn-dias-mrs-legal-heir-of-late-mrs-dorothy-lawrence-pereira-v-ito-mum-trib\/","title":{"rendered":"Sherlyn Dias (Mrs.) (Legal Heir of Late Mrs. Dorothy Lawrence Pereira) v. ITO (Mum.)(Trib.),"},"content":{"rendered":"<p style=\"font-weight: 400\">The assessee, a co-owner of a property, entered into a Development Agreement with a developer for redevelopment of the property and received \u20b950 lakh as consideration for granting development rights. The Assessing Officer held that since ownership of the property remained with the assessee and the amount was a non-refundable payment, it constituted a revenue receipt taxable under the head \u201cIncome from Other Sources\u201d under section 56 and denied the claim for exemption under section 54EC. The CIT(A) affirmed the assessment. On appeal, the Tribunal held that development rights are valuable rights forming part of the bundle of ownership rights and constitute a \u201ccapital asset\u201d within the meaning of section 2(14). The amount received under the Development Agreement was contractual consideration directly attributable to the transfer of development rights and, therefore, could only be assessed under the head \u201cCapital Gains\u201d. Merely because the assessee retained ownership in the redeveloped property or the developer treated the payment as revenue expenditure in its books would not alter the character of the receipt. Section 56, being a residuary provision, cannot be invoked where the receipt is chargeable under a specific head of income. Accordingly, the addition made under the head \u201cIncome from Other Sources\u201d was deleted, and the Assessing Officer was directed to assess the receipt as Capital Gains and allow the assessee&#8217;s claim for exemption under section 54EC in accordance with law. <strong>(<\/strong><strong>AY. 2011-12) \u00a0( ITA No. 7107\/Mum\/2025, dt . 04.06.2026. )<\/strong><\/p>\n<p style=\"font-weight: 400\"><strong>\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 45: Capital gains \u2013 Income from other sources &#8211; Transfer of Development Rights \u2014 Compensation received under a redevelopment agreement is assessable as Capital Gains and not as Income from Other Sources. Exemption under section 54EC is allowable. [ S. 2(14), 2(47),  54EC, 56, 50C &amp; 147) <\/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-62116","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-g9S","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62116","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=62116"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62116\/revisions"}],"predecessor-version":[{"id":62117,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62116\/revisions\/62117"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=62116"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=62116"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=62116"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}