Section 50C is Not Applicable Where The Sale of Immovable Property held With Commercial Intent and Taxable as Business Income

The Income Tax Appellate Tribunal (ITAT) in Chennai has ruled in favor of the assessee in the case of A. Jesu Rajendran v. ITO. The dispute arose when the revenue authorities assessed the profit derived from the transfer of property as short-term capital gains and invoked Section 50C to determine the value of the property …

The Income Tax Return (ITR) cannot be deemed invalid as long as the assessee’s request for condonation of delay in submitting the ITR-V

In the case of Anagha Vijay Deshmukh v. DCIT, the assessee had filed her income tax return electronically for the relevant assessment year claiming carry forward of long-term capital loss. She later filed a revised return claiming the same loss at a higher amount. However, the lower authorities denied her claim on the grounds that …

Capital Gains on Inherited Property: Indexed Cost of Acquisition Benefit Available from First Owner’s Acquisition Date

The Mumbai Income Tax Appellate Tribunal (ITAT) has held that while computing capital gains on the transfer of a capital asset received under a will, the indexed cost of acquisition has to be computed with respect to the year in which the first owner held the asset. The ITAT relied on a jurisdictional High Court …

Once Income Tax is Paid on Execution of Agreement to Sale It is Not Permissable to Tax Twice on Execution of Sale Deed

The PCIT v. Dipak Govindbhai Dalwadi case (2023) 147 taxmann.com 393 (Guj.) highlights an important issue regarding the imposition of taxes on the sale of land. The case involves an assessee who entered into an agreement to sell his land for Rs. 95,00,000/- in 2008, with registration taking place in 2012. The Assessing Officer found …

Exemption under section 54 is avaliable even if residential property is purchased in the joint name of assessee, daughter and son-in-law

Rachna sold her residential property and invested the entire amount in the purchase of a new residential property in the joint names of her daughter and son-in-law and claimed exemption under section 54 of the income tax act. The tax officer disallowed her exemption on the grounds that new property can only be purchased in …

Exemption from capital gain on sale of property used for residence

Who can claim benefit of Section 54? Benefit is available to an Individual or a Hindu undivided family (HUF), Firms, LLP’s and companies cannot claim benefits of this section. What are the conditions to avail the benefit of exemption under Section 54? The asset sold, means Buildings or Lands appurtenant thereto, and a residential house, …

Capital gain not to be charged on investment in NHAI and REC bonds.

 1. Applicability of Section 54EC: Long-term capital gain arises from the transfer of a capital asset [, being land or building or both,]  is exempt under section 54EC if assessee has, at any time within a period of 6 months after the date of such transfer, invested the whole or any part of capital gains in …

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