Judgments in favour

- CIT Vs. Dr. P.S. Pasricha Appeal No.1825 of 2009 dated 7-10-09

- Ishwar SinghChawla Vs. DCIT (2010) 130 TTJ ( Mum) (4) 108

- Mr. Harmeet Gandhi vs. ITO ( Unreported) ITA No.286/ Mum/2009 dated 30-4-2010

Ratio of all the above judgments is that the requirement of the law is that, the source of funds is quite irrelevant.

In any case, the provisions of the Act cannot be interpreted in an unreasonable manner, for tax laws ‘likeall other laws, have to be interpreted reasonably and in consonance with justice’.

@ Mr. MD

I agree that above decisions are in favor but The decision of Milan Sharad Ruparel {supra} cannot be rejected outrightly, as it has met the logic that the  intention of the legislature is to promote own funds to be reinvested.

There are case laws to support and case laws which do not support the situation.

Can u tell me some other alternative other than section 54 to avail exemption of capital gain on sale of residential plot. The assesse is a business person doing business with his brother in partnership. The assesse files return for partnership and also his individual return. The plot was owned by him individually and later sold. It has no connection with the partnership firm he has with his brother. Any other option he can adopt and avail exemption in the AY 2011-12 for the sale that happened in the PY 2010-11.

we have aagriculrure  land near  nellore municipality limits and near hyderabad corporation ,andrapradesh lstate, while purchasing  these landsthey  were more than 8 km from respective municipality limits , now we want to sell these lands. in mean time municipalty limits were extended locally but not notified in the central govt notification. we would like to know
1) weather the sale of the land attrats capital gains tax
2) kindly give us the latest central govt notifications  areas regarding the  nellre municipal limits and hyderabad corporation limits

Another Capital Gains Query (urgent):

My uncle has an undivided property for which he has undivided 1/4th share as inheritance. the property contains urban land and an old 4 storey building. All the share holders have entered into a Joint agreement with developer/builder wherein builder will demolish old building, build up 10 flats of which 5 flats will be given to the Landowners. The construction work has already started and as per agreement builder has given some money to landowners in cheque. the construction completion will take atleast 24 months. 

my uncle is in govt.service. How this money in cheque received from thedeveloper/builder will be considered from taxation point of view and how it should be handled in tax return etc. ? An early response is requested.

Thanks,

ghoshb