22 May 2014
We have alloted a property by M/s ABC for Rs.50 Lakh in 2011 (Physical Possession not given). now M/s ABC giving us compansation of Rs.70 Lakh. how we treat the profit?
should this be treated as long term capital gain or something else, please guide
22 May 2014
In Ahmed G.H. Ariff v. CWT, the Supreme Court observed as follows: “PROPERTY” is a term of the widest import and, subject to any limitation which the context may require, it signifies EVERY POSSIBLE INTEREST which a person can clearly hold and enjoy.”
Thus the word ‘property’ used in section 2(14) of the Income-tax Act, 1961 is a word of widest amplitude and that any right that could be called property would be included in the definition of ‘capital asset’.
The words "held by an assessee" include physical, actual, constructive and also SYMBOLIC possession of property of any kind.
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