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Income tax :- capital gains : surrender of illegal occupancy of primises
How the Capital Gains shall be determined if the Original / Legal Owner pays compensation to the Illegal Occupant of the Property.
(And)
How the Exemption has to be determined if the Compensation so paid by the Original / Legal Ownder to the Illegal Occupant, in case the money is re-invested in another House Property.
Please Advise
Replies (3)
Recent court judgements, have declared the sum received as capital gain with cost of aquisition as zero (if no actual value acertained). The capital gain, if long term, can be exempted upto the value invested into any residential property.
Thank you very much .. Sir..
Kind Regards
CA Aryan Bhla Krishnoo
May refer following judgement, for your case study:
1. 1994 205 ITR 9 Cal, Commissioner Of Income-Tax vs Smt. Lila Ghosh for mesne profits over illegal occupation.
2. 1984 147 ITR 676 Mad, CIT vs. P. Mariappa Gounder
For compensation paid on surrender of illegal occupancy : I.T.A.No. 5295/Del/2012 Archa Sharma Vs. ITO
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