https://www.taxtmi.com/caselaws?id=450421 ITAT Rajkot held that surrender of leasehold rights to Gujarat Government constituted transfer under Section 2(47) as it extinguished capital assets. Despite compensation received from third party M/s. CGPL rather than government, capital gains tax applied under Section 45(1) which doesn't specify source of consideration. Court found surrender wasn't voluntary but planned action based on MOU requiring 80% consideration payment upon surrender application. Relied on SC precedent that third-party compensation constitutes taxable transfer. However, regarding interest under Section 234B, tribunal directed AO to adjust seized cash/FDRs against tax liability from seizure date per Section 132B provisions. en-us Thu, 29 Feb 2024 00:00:00 +0530 Tue, 05 Mar 2024 15:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450421 ITAT Rajkot held that surrender of leasehold rights to Gujarat Government constituted transfer under Section 2(47) as it extinguished capital assets. Despite compensation received from third party M/s. CGPL rather than government, capital gains tax applied under Section 45(1) which doesn't specify source of consideration. Court found surrender wasn't voluntary but planned action based on MOU requiring 80% consideration payment upon surrender application. Relied on SC precedent that third-party compensation constitutes taxable transfer. However, regarding interest under Section 234B, tribunal directed AO to adjust seized cash/FDRs against tax liability from seizure date per Section 132B provisions. Case-Laws Income Tax Thu, 29 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450421