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Commissioner Of Income-Tax vs Gulab Chand on 4 March, 1991

19. The learned authorized representative for the assessee submitted that the decision in CIT v. Gulab Chand (1991) 192 ITR 495 is no longer valid in view of the decision in Hon'ble Supreme Court in CIT v. D.P Sandhu Brothers Chembur (P) Ltd. (2005) 273 ITR 1 (SC). He pointed out that the Hon'ble Supreme Court has held in the aforesaid case that capital gains cannot be brought to tax as casual or non-recurring receipt where no cost of acquisition can be computed. He reiterated his submission that the assessee had received the flat in consideration of its surrendering the tenancy right and hence, there was no cost of acquisition though the said flat received from M/s. Ajay Builders was a capital receipt within the meaning of section 2(14). His alternative submission was that even if his plea regarding the receipt of the flat from M/s. Ajay Builders in consideration of his said surrendering its tenancy right is not accepted, the receipt of flat by the assessee would still not be taxable as it would be a gift received from the sister concern without any consideration.
Allahabad High Court Cites 10 - Cited by 27 - B P Reddy - Full Document
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