Taxability of surrender consideration: statutory tenants' receipts treated as casual income and therefore taxable under income tax law. The tribunal held that payments received by a statutory tenant under the Bombay Rent Act for surrendering possession cannot be treated as proceeds of a capital asset sale because the tenant lacks a transferable contractual interest; such receipts are casual and non-recurring income and are taxable under the Income tax Act.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Taxability of surrender consideration: statutory tenants' receipts treated as casual income and therefore taxable under income tax law.
The tribunal held that payments received by a statutory tenant under the Bombay Rent Act for surrendering possession cannot be treated as proceeds of a capital asset sale because the tenant lacks a transferable contractual interest; such receipts are casual and non-recurring income and are taxable under the Income tax Act.
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