https://www.taxtmi.com/caselaws?id=211525 The High Court held that compensation received for giving up the right to specific performance of a property sale agreement constitutes a transfer of a capital asset, attracting capital gains tax. The Court overturned the Tribunal's decision, emphasizing that the right to specific performance is a capital asset, and its relinquishment is taxable. The Revenue's appeals were allowed, the Tribunal's orders were set aside, and the matter was remitted to the Assessing Officer for computing capital gains in compliance with the law and the Court's directives, including deductions under Section 48 of the Income Tax Act. Each party was to bear its own costs. en-us Tue, 04 Jan 2011 00:00:00 +0530 Sun, 25 Mar 2012 22:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=211525 The High Court held that compensation received for giving up the right to specific performance of a property sale agreement constitutes a transfer of a capital asset, attracting capital gains tax. The Court overturned the Tribunal's decision, emphasizing that the right to specific performance is a capital asset, and its relinquishment is taxable. The Revenue's appeals were allowed, the Tribunal's orders were set aside, and the matter was remitted to the Assessing Officer for computing capital gains in compliance with the law and the Court's directives, including deductions under Section 48 of the Income Tax Act. Each party was to bear its own costs. Case-Laws Income Tax Tue, 04 Jan 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=211525