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| The Tax Publishers2020 TaxPub(DT) 0736 (Kol-Trib) INCOME TAX ACT, 1961
Section 2(14)
Explanation to section 2(14) clearly says that property includes and shall be deemed to have always included any rights in or in relation to an Indian company, including rights of management or control or any other rights whatsoever. and assessee not having provided details of amount, if any, which it might have paid for acquiring leasehold rights. It could be presumed that cost of acquiring leasehold rights was almost Nil. Hence entire amount of Rs. 3.56 crores had to be taken to be long-term capital gain of assessee.
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Capital gains - Capital asset - Leasehold rights in property -
Assessee transferred its lease rights in certain plots by way of an agreement in favour of M/s. ARA Enterprises (P) Ltd. and from the transferee (M/s. ARA Enterprises (P) Ltd.), assessee got Rs. 2.24 crores and payment of arrears of rent of Rs. 1.32 crores AO taxed both amounts put together as capital gain. Assessee challenged this.Held: Explanation to section 2(14) clearly says that property includes and shall be deemed to have always included any rights in or in relation to an Indian company, including rights of management or control or any other rights whatsoever and assessee not having provided details of amount, if any, which it might have paid for acquiring leasehold rights. It could be presumed that cost of acquiring leasehold rights was almost Nil. Hence, entire amount of Rs. 3.56 crores had to be taken to be long-term capital gain of assessee.
REFERRED :
FAVOUR : Against the assessee.
A.Y. : 2011-12
IN THE ITAT, KOLKATA BENCH
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