Condonation of Delay: Tribunal directed condonation where rectification proceedings were pursued, ordering merits adjudication after opportunity to be...
Restriction of Input Tax Credit under Rule 86A applies only to fraudulently or ineligible availed credit; mere wrongful recipient availment is insuffi...
The article examines whether a flat allotted on surrender of tenancy rights was taxable as income under the residuary receipt provision or constituted consideration for transfer of a capital asset entitling the taxpayer to residential property exemption. On the facts, documentary and statutory verification established genuine continuous tenancy and rejected a sham finding. The surrender of tenancy rights was held a transfer of a capital asset, the flat allotment constituted consideration for that transfer and therefore attracted capital gains treatment rather than residuary income taxation. The investment in the allotted residential flat met the conditions for exemption under the residential property exemption provision.
The article examines whether a flat allotted on surrender of tenancy rights was taxable as income under the residuary receipt provision or constituted consideration for transfer of a capital asset entitling the taxpayer to residential property exemption. On the facts, documentary and statutory verification established genuine continuous tenancy and rejected a sham finding. The surrender of tenancy rights was held a transfer of a capital asset, the flat allotment constituted consideration for that transfer and therefore attracted capital gains treatment rather than residuary income taxation. The investment in the allotted residential flat met the conditions for exemption under the residential property exemption provision.
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