https://www.taxtmi.com/caselaws?id=36907 A contractual right to obtain conveyance of immovable property for a price is property and therefore a capital asset. Under section 12B of the Income-tax Act, 1922, however, a loss is allowable only where it arises from sale, exchange, relinquishment or transfer of that capital asset. Forfeiture of earnest money after failure of the purchase transaction and mutual cancellation of the agreement did not amount to relinquishment by the purchaser, and the proviso concerning money received in negotiations for sale did not assist the purchaser's claim. The retained amount was therefore not deductible as a capital loss. en-us Tue, 13 Feb 1979 00:00:00 +0530 Thu, 25 Mar 2010 12:40:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36907 A contractual right to obtain conveyance of immovable property for a price is property and therefore a capital asset. Under section 12B of the Income-tax Act, 1922, however, a loss is allowable only where it arises from sale, exchange, relinquishment or transfer of that capital asset. Forfeiture of earnest money after failure of the purchase transaction and mutual cancellation of the agreement did not amount to relinquishment by the purchaser, and the proviso concerning money received in negotiations for sale did not assist the purchaser's claim. The retained amount was therefore not deductible as a capital loss. Case-Laws Income Tax Tue, 13 Feb 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36907