Delhi High Court: Capital gains not applicable in property sales to unrelated parties.

The High Court of Delhi ruled in favor of the assessee regarding the computation of capital gains on property sales. It held that section 52(2) of the Income-tax Act, 1961 did not apply as the sales were to unrelated parties without additional consideration. The decision was influenced by the precedent in K.P. Varghese v. ITO [1981] 131 ITR 597.

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The High Court of Delhi ruled in favor of the assessee in a case related to the computation of capital gains on the sale of properties. The court found that section 52(2) of the Income-tax Act, 1961 was inapplicable as the sale transactions were made to absolute strangers and no additional consideration was received. The decision was based on the precedent set by the apex court's ruling in K.P. Varghese v. ITO [1981] 131 ITR 597.

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