Profit earned by the assessee in the sale of rights is to be treated as capital gains

Last updated: 22 February 2021

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The Income Tax Appellate Tribunal has ruled on whether income earned from selling property rights, initially acquired via an allotment letter, should be classified as long-term capital gains or 'Income from other sources'. The assessee appealed the Commissioner's decision on this matter for the assessment year 2016-17.

Court :
ITAT Kolkata

Brief :
The present appeal has been preferred by the assessee against the order dated 27.02.2020 of the Commissioner of Income-tax (Appeals)-8, Kolkata [hereinafter referred to as ‘CIT(A)’].

Citation :
ITA No.532/Kol/2020

IN THE INCOME TAX APPELLATE TRIBUNAL
KOLKATA BENCH “SMC” KOLKATA
Before Shri Sanjay Garg, Judicial Member

ITA No.532/Kol/2020
Assessment Year:2016-17

Karan Chaudhary
P/593, Purnadas Road,
Kolkata-700 029
[PAN No.AHNPC 5835 D]
Appellant

V/s.

Income Tax Officer,
Ward-30(2), Aayakar
Bhawan, (Dakshin),
2,Gariahat Road, K
Kolkata-700 031
Respondent

Hearing through video Conferencing
By Appellant Shri Miraj D Shah, Advocate
By Respondent Shri Jayanta Khanra, JCIT-SR-DR
Date of Hearing 08-02-2021
Date of Pronouncement 08-02-2021

O R D E R

The present appeal has been preferred by the assessee against the order dated 27.02.2020 of the Commissioner of Income-tax (Appeals)-8, Kolkata [hereinafter referred to as ‘CIT(A)’].

2. The only issue raised by the assessee in this appeal is as to whether the income earned from the sale of right in the property / flat which was acquired by the assessee by way of allotment letter from the builder in the year 2010 would qualify as long term capital gains or under the head “Income from other sources”.

To know more in details find the attachment file

FAQ :

The main issue was whether the profit earned from selling rights in a property/flat should be treated as long-term capital gains or 'Income from other sources'.

The assessee acquired the rights to the property by way of an allotment letter from the builder in the year 2010.

This appeal relates to the assessment year 2016-17.

The decision was made by the Income Tax Appellate Tribunal, Kolkata Bench.