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Tax Publishers
Redevelopment agreement and receipt of
consideration as corpus contribution
Facts:
Assessee
was part of a cooperative housing society which went into a redevelopment
agreement arising out of which monies were payable by the builder to the
society as corpus contribution. This was held to be taxable by the lower tax
authorities. On appeal the DRP upheld the addition. On further appeal -
Held
in favour of the assessee that the corpus contribution cannot be taxed in
the hands of the assessee as it was not a consideration to the assessee.
Applied:
Lawrence Rebello v. ITO, in [ITA No. 132/Ind./2020, dt.
29-09-2021] : 2021 TaxPub(DT) 5718 (Ind-Trib)
Ed. Note:
Reference be made to section 45(5A) and the amendment made to the said section
vide Finance Act, 2023 "wherein by any other mode" is now inserted to
expand the scope of the said section.
Case: Narayan Devarajan Iyengar v. ITO 2023 TaxPub(DT) 2555 (Mum-Trib)
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