Capital gains query
JAIDEEP SONPAL (a) (51 Points)
16 December 2011JAIDEEP SONPAL (a) (51 Points)
16 December 2011
1. Long Term as more than 3yrs.
2. Cost of Acquisition = Price paid for acquiring pagdi
3. Consideration = FMV
4. For availing exemption exemption u/s 54F purchase a house within 2 yrs of sale.
Amount of Exemption
CA Ketan Waghela
(Partner at Elite Educare)
(356 Points)
Replied 16 December 2011
Jaydeep ji,
In pagri system only tenancy rights can be sold not the property.
My answer ids based on the followig Case Law:
The question of selling your land to someone else if you have a pagri right over it is something which is relatively straightforward.
It can't be done.
The pagri right can be sold, only; and that too with the permission of the landlord.
The final nail in the coffin set out by any claim of ownership which the tenant might impose through his pagri right was given by Chief Justice of Sindh Justice Sabeeh-uddin.
Upon answering the question of the landlord's right to evict the tenant he said: 'Mere statement of the landlord to effect that the tenant leaves the premises in question for his personal need would be sufficient to get the tenant evicted.' Pagri will not act to disentitle the landlord of his statutory right to get the land evicted.
Yet all is not lost for the tenant as the pagri amount would be returned in case any course of action similar to that described above is taken by the landlord.
Link to the full case Law:
https://www.brecorder.com/company-news/single/601/235/1261460/
(You will find this somewhere in the middle of the page.)
Based on above judgement Mr. X can not sell the house.
Another link supporting my answer. (please read Legal Status of Pagri.)
Members please correct me if I’m wrong.
CA. Roopali Kadam
(Jobs on assignment basis.)
(1458 Points)
Replied 17 December 2011
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