TaxTMI 
TaxTMI 
2026 (5) TMI 1054
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....nent alternate accommodation at anytime during the relevant previous year, and therefore the provisions of section 56(2)(x) were not attracted during the previous year. 3. Strictly in the alternative and without prejudice to above, the learned Commissioner of Income Tax Appeals erred in fact and law by confirming an addition of the stamp duty value said in the appellant's total income without appreciating the fact that the stamp duty value is inclusive of rent compensation which has been duly offered to tax during the financial year. 4. Strictly in the alternative and without prejudice to above, if one takes the view that the transfer took place during the year under consideration and the same is exigible to tax then the computation would have to be made under the head "Capital Gains", and the Appellant would be entitled to exemption u/s 54F, as the "consideration" sought to be taxed would have been fully reinvested in the permanent alternate accommodation. 5. Strictly in the alternative and without prejudice to the above, out of the stamp duty value sought to be taxed both rent for temporary alternate accommodation, and hardship compensation is not exigi....
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.... paid for temporary accommodation, aggregating to Rs.5,50,725/-, was duly offered to tax in equal proportion by the assessee and her husband. It is an admitted position that possession of the PAA was not handed over during the relevant previous year. 3.4 It is further noted that the assessee's husband was also a tenant in another premises situated in the building, namely Bakul Niwas, in respect of which a separate redevelopment agreement was executed on 17.03.2016. Under the said agreement, the husband was entitled to receive PAA; however, the assessee was neither a party to the said agreement nor connected therewith. Further, even in respect of the said premises, possession of the alternate accommodation was not received either in the earlier year or during the year under consideration. In these circumstances, the assessee contended that no taxable event had arisen in the relevant previous year, either in her hands or in the hands of her husband. 3.5 The learned Assessing Officer invoked section 56(2)(x) of the Act and asked the assessee as why the difference in the market value of the property adopted by the Stamp Duty Value Authorities and the consideration recorded in the....
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....d the same were agreed to be surrendered in consideration of permanent alternate accommodation (PAA) and corpus compensation, the fourth condition remains unfulfilled. But as far as the fourth condition is concerned, the learned counsel for the assessee referred to clause 13 of the agreement and submitted that the surrender of tenancy rights was contractually stipulated to take effect only upon the assessee being put in possession of the new premises. It was emphasized that, admittedly, no such possession was handed over during the year under consideration. Consequently, the assessee continued to hold tenancy rights in the original premises. It was argued that, at best, the rights of the assessee stood in abeyance during the interregnum period and were not extinguished. In the event of failure of the redevelopment project, such rights would stand revived. On this basis, it was contended that no "transfer" within the meaning of section 2(47) of the Act had taken place during the relevant year, and therefore no capital gains could be said to have accrued. 7.2 Secondly, it was submitted that the transaction in question was not one of receipt without consideration. The PAA and the c....
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....able property during the relevant previous year. The charge under the said provision is triggered only when such receipt takes place without consideration or for inadequate consideration. Therefore, the resolution of dispute in the case of assessee rests on the interpretation of the word "receives" as appearing in Section 56(2)(x). The Section 56(2)(x) is a deeming provision that taxes the "receipt" of any sum of money or immovable property without adequate consideration. For an immovable property to be "received," there must be a transfer of the right to use, occupy, and enjoy the property, typically evidenced by possession or a title deed. 9.2 In the present case, it is an admitted and undisputed fact that the assessee has not received possession of the permanent alternate accommodation during the year under consideration. The agreement itself clearly stipulates that the surrender of tenancy rights would take effect only upon the assessee being placed in possession of the new premises. Thus, till such possession is handed over, the tenancy rights cannot be said to have been extinguished or transferred in terms of section 2(47) of the Act. At best, the rights of the assessee re....