Wednesday 19 June 2013

Capital gain is not chargeable in case of consideration received on transfer of property under Adverse Possession.

Adverse Possession:-

Adverse possession is a doctrine under which a person in possession of land owned by someone else may acquire valid title to it, so long as certain common law requirements are met, and the adverse possessor is in possession for a sufficient period of time, as defined by a statue of limitation.

Assessee acquired property by virtue of adverse possession and there is no cost of acquisition. It was held consideration received on transfer of said property is not liable for capital gain tax.

CIT vs. Star Chemicals (Bom) Pvt. Ltd. ITA Nos. 1110 of 2009&1153 of 2009 (Bombay).  

Harsh Judgement For Builders:- Annual Value of the Unsold Flats Held as Stock in Trade.

Annual Value of the Unsold Flats Held as Stock in Trade.:-

It was held that the annual value of the unsold flats held as stock in trade is chargeable under the head Income From House Property.

CIT vs. Ansal Housing Finance & Leasing Co. Ltd. 213 Taxman 143 (Delhi.)