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TMI Blog2021 (8) TMI 470X X X X Extracts X X X X X X X X Extracts X X X X ..... occupy the property. As such, we are unable to give any other colour to the transaction, which has been accepted by the Department as such in the hands of the assessee s father. Even if for a moment, it is accepted that the sum of ₹ 60 lakhs was received by the assessee from his father not towards consideration for transfer of right to occupy the property, at the most, it would amount to a gift in his hands, which is again not chargeable to tax. The authorities below have characterized ₹ 60 lakhs as income chargeable to tax under the head Income from other sources . However, no specific clause of section 56 of the Act has been brought to our notice encompassing the prevailing situation within its purview. We, therefore, ove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s Srishti Developers under clause 3(A) of the development agreement. This amount was offered as Long term capital gain and thereafter exemption was claimed u/s 54F on depositing the equal amount in Capital gain account scheme with the concerned bank. On being called upon to explain as to on what account the sum of ₹ 60 lakh was received, the assessee submitted that his father wanted to sell the property, including the floor which he was occupying for last more than ten years, to which, he was not agreeable. Eventually, the assessee agreed to vacate the premises in lieu of a consideration of ₹ 60 lakhs which was received on account of surrender/relinquishment of right to occupy the property which was in the nature of a capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal, the ld. DR was directed to verify from the AO of assessee s father as to how the transaction of ₹ 60 lakhs was reflected and assessed in his assessment. The ld. DR, on information from the AO of the assessee s father, stated today in the open court, that his father reduced a sum of ₹ 64 lakhs from the stamp value with the remarks Cost of selling , including a sum of ₹ 60 lakhs given to the assessee by the developer directly through cheque and that further the claim of deduction of ₹ 64 lakhs got accepted and no addition of ₹ 60 lakhs was made on this score. It, therefore, emerges that the total consideration of ₹ 2.70 crores was received in two parts, namely, ₹ 60 lakhs by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 60 lakhs as income chargeable to tax under the head Income from other sources . However, no specific clause of section 56 of the Act has been brought to our notice encompassing the prevailing situation within its purview. We, therefore, overturn the impugned order and hold that the assessee rightly computed long term capital gain of ₹ 60 lakhs and then claimed exemption u/s 54F of the equal amount. 6. The ld. AR has brought to our notice that for the A.Y. 2015-16, the assessee offered capital gain of ₹ 17.69 lakhs on account of un-utilization of capital gain account scheme from this transaction to that extent. 7. In the result, the appeal is allowed. Order pronounced in the Open Court on 11th August, 2021. - - Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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