Assessee's Grandfather was alloted Reidential Property to live in by the Trust wherein he was employed and the same was given in fidusary relation and no rent is charged. The Property was in the ownership of the TRUST.
The Assesses's Family Members are residing in the said residential property since 70 years.
Now, the trust has decided to sale the property to X Pvt. Ltd and hence, asked the assesee and family member to vacate the property. The assesee has filed suit int the court of law.
Now, finally both the parties has decided to settle the case and the Trust has paid the Compensation for vacating the right in the said property to the assessee and family members.
WHAT SHOULD BE THE TREATMENT AND TAXABILITY OF SUCH COMPENSATION IN THE HANDS OF RECEIPIENT??
- IS THIS CAPITAL RECEIPT AND HENCE , NOT TAXABLE??
- IS THIS AMOUNT LIABLE FOR CAPITAL GAIN??
- IS THIS REVENUE RECEIPT TAXABLE UNDER OTHER SOURCES??
Please guide me along with the LOGIC AND REASONING supported by reference to the SECTIONS APPLICABLE OR ANY LEGAL JUDGEMENT.
CAclubindia
