https://www.taxtmi.com/caselaws?id=771934 ITAT Chandigarh held that compensation received by assessee for relinquishing settled possession and beneficial interest in property constitutes long-term capital gains, not income from other sources. The tribunal ruled that possessory and beneficial rights over prolonged period qualify as capital asset under Section 2(14), and relinquishment constitutes transfer under Section 2(47). AO's treatment as gift under Section 56(2) was incorrect as receipt was not gratuitous but consideration for relinquishing acknowledged rights. Assessee entitled to deductions under Sections 54 and 54EC. Appeal allowed, capital gains declared in return accepted. en-us Wed, 14 May 2025 00:00:00 +0530 Sat, 31 May 2025 13:40:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771934 ITAT Chandigarh held that compensation received by assessee for relinquishing settled possession and beneficial interest in property constitutes long-term capital gains, not income from other sources. The tribunal ruled that possessory and beneficial rights over prolonged period qualify as capital asset under Section 2(14), and relinquishment constitutes transfer under Section 2(47). AO's treatment as gift under Section 56(2) was incorrect as receipt was not gratuitous but consideration for relinquishing acknowledged rights. Assessee entitled to deductions under Sections 54 and 54EC. Appeal allowed, capital gains declared in return accepted. Case-Laws Income Tax Wed, 14 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771934