https://www.taxtmi.com/caselaws?id=362129 A registered memorandum of understanding and allotment letter in an under-construction property created an enforceable right to acquire the property, and that right was treated as a capital asset. On relinquishment of the right after a holding period exceeding 36 months, the transaction was treated as a transfer for capital gains purposes, with computation required on the indexed cost of acquisition. Amounts described as liquidated damages were treated as part of the same transfer consideration because they were inextricably linked to the relinquishment, but they were not to be added to book profit under MAT beyond the statutory adjustments permitted. The section 35D claim was also stated to be allowable on the record. en-us Wed, 06 Jun 2018 00:00:00 +0530 Wed, 20 Jun 2018 00:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=362129 A registered memorandum of understanding and allotment letter in an under-construction property created an enforceable right to acquire the property, and that right was treated as a capital asset. On relinquishment of the right after a holding period exceeding 36 months, the transaction was treated as a transfer for capital gains purposes, with computation required on the indexed cost of acquisition. Amounts described as liquidated damages were treated as part of the same transfer consideration because they were inextricably linked to the relinquishment, but they were not to be added to book profit under MAT beyond the statutory adjustments permitted. The section 35D claim was also stated to be allowable on the record. Case-Laws Income Tax Wed, 06 Jun 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=362129