9911796707
TMI Blog2015 (7) TMI 1252X X X X Extracts X X X X X X X X Extracts X X X X ..... ) erred in holding that a sum of Rs. 35,00,000/- received by way of family settlement is liable to be taxed as "long term capital gain" subject to deduction of indexed cost. The appellant submits that the relinquishment of property by way of family arrangement would not attract capital gain tax as the same was a prudent arrangement to avoid possible litigation among the family members. The appellant therefore submit that the entire addition ought to be deleted". 2. Brief facts of the case are that the assessee is an individual, who had inherited the property from the father of her deceased husband (i.e. her father-in-law), being 1/3rd of the house property and plots situated at Jodhpur. The property was devolved upon her after the death of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er indexation as provided in section 48. The Ld. CIT(A) after considering the Valuation report of the assessee and also the remand report of the AO, directed the AO to take a fair market value as on 01.04.1981 as per the valuation report submitted by the assessee and give indexation benefit to the assessee in view of the decision of Hon'ble Bombay High Court in the case of CIT v Manjula J Shah, reported in 16 taxman.com 42(Mum) 5. Before us, the Ld. Counsel for the assessee after narrating the entire facts, drew our attention to the family settlement agreement and pointed out that there was a clear-cut settlement that assessee shall cease to have any right, title, interest, claim in any of the properties and in lieu of her rights, she was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... complete the transaction of settlement, following instruments were also drawn and executed:- a. A release deed by Smt. Urmila of the rights, title & interest in the property 340, Sardarpura Road No. 4, Jodhpur favouring Shri F.L. Maheshwari & Shri Jitendra Maheshwari. b. A Gift deed by Smt Urmila of her interest in property at 3 A Pokran House Jodhpur favouring Smt. Shashi Maheshwari W/o Shri Jitendra Maheshwari c. Shri Jitendra Maheshwari to transfer all his rights/title/ interest in property at 4A & 4B Pokran House by way of gift in favour of Shri F L. Maheshwari". In lieu of her surrendering of her rights, the assessee was paid a sum of Rs. 35 lakhs which is the subject matter of dispute before us in this appeal. The said relinqui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... angement has to be seen as an agreement between the Members of the same family for settling doubtful or disputed or preserving the family property or the members and security of the family by avoiding litigation or by saving its owner. Similar view has been taken in various decisions as relied upon by the Ld. Counsel. In the latest decision of Hon'ble Bombay High Court in the case of CIT vs Sachin B. Ambulkar, the Hon'ble High Court upheld that if there is no transfer of asset and amount has been received by the assessee as part of family arrangement, does not gave rise to liability of capital gain tax. Thus, we hold that the amount received by the assessee in terms of family settlement agreement cannot be treated on account of transfer of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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