https://www.taxtmi.com/caselaws?id=403477 A contractual right under a letter of intent to obtain conveyance of immovable property can constitute property and thus a capital asset under section 2(14) of the Income-tax Act, 1961, even if the flats are yet to be constructed and the agreement is unregistered. Cancellation of that enforceable right results in extinguishment of a capital asset and amounts to a transfer under section 2(47)(vi). Compensation received for surrender of the right is therefore treated as consideration for capital gains purposes and not as income from other sources. en-us Thu, 21 Jan 2021 00:00:00 +0530 Fri, 29 Jan 2021 21:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=403477 A contractual right under a letter of intent to obtain conveyance of immovable property can constitute property and thus a capital asset under section 2(14) of the Income-tax Act, 1961, even if the flats are yet to be constructed and the agreement is unregistered. Cancellation of that enforceable right results in extinguishment of a capital asset and amounts to a transfer under section 2(47)(vi). Compensation received for surrender of the right is therefore treated as consideration for capital gains purposes and not as income from other sources. Case-Laws Income Tax Thu, 21 Jan 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=403477