03 December 2015
1. I sale of Building of rs. 2.6 Crores- In Deed 2. Sale of Furniture of rs. 30 Lacks- Separate Agreement
I Declared Total sale Value of Rs.2.90 crores and claimed Exemption on Re Investment Fully.
Now Officer is telling that sale of Furniture of rs.30 lacks should be shown in Income from Other Sources not capital gain. I Have Separate Agreement also. Please clarify and send me Case Laws. and also if i went appeal our argue is correct Please send me Case Laws sir
03 December 2015
As per the definition of section 2(14)(ii) the furniture is a personal effect and is not a capital asset. Though the furniture is personal effect, but no doubt it is an asset and may not be called as a capital asset for capital gains purposes. Any receipt from sale of furniture used for personal purposes is of capital nature and not taxable.
If AO treated the sale proceeds of the furniture as other income, you cannot even claim its cost u/s 57 as the same is in the nature of capital expenditure. AO is wrong in treating it as revenue receipt.
If you provide me the facts of the case, I may guide you further on this.
CAclubindia
