2016 (11) TMI 77

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...., for the Respondent ORDER P. C. This Appeal under Section 260A of the Income Tax Act, 1961 (the Act), challenges the order dated 7th June, 2013 passed by the Income Tax Appellate Tribunal (the Tribunal. The impugned order is a common order for the Assessment Years 200405 and 200607. This Appeal relates to Assessment Year 200405. 2 The Revenue urges only the following question of law f....

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....ts property. The Assessing Officer held that the payment was not genuine and, therefore, disallowed the entire payment of Rs. 4.25 Crores made to M/s. Magnum Ferromental Pvt. Ltd., while computing the cost of the property to arrive at capital gains under Section 45(2) of the Act. 4 Being aggrieved, the Respondent-Assessee filed an appeal to the Commissioner of Income Tax (Appeals) [CIT(A)]. In ....

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....eceived on account of the surrender of its tenancy right, was taxable under the head 'income from other sources'. Both the authorities rejected the claim of M/s. Magnum Ferromental Pvt. Ltd., that it is exempted. On further appeal, the Tribunal by an order dated 18th January, 2002 held that the amount received by M/s. Magnum Ferromental Pvt. Ltd., were entitled to an exemption as claimed b....

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....ect Assessment Year was only 2/3rd of the property. 7 The grievance of the Revenue before us is that the surrender of tenancy rights by M/s. Magnum Ferromental Pvt. Ltd., on receipt of consideration in favour of the Respondent-Assessee is not a genuine transaction. Therefore, the said amount cannot be taken into account while arriving at the costs of the capital asset while computing the capita....