ITAT: Redeveloped flat can't be taxable as 'other income'
The Income Tax Appellate Tribunal (ITAT) ruled in favor of a taxpayer who received a Rs 11.7 crore flat for surrendering tenancy rights in a redevelopment project. ITAT held that surrendering tenancy rights constitutes a capital asset transfer, making the taxpayer eligible for Section 54F exemption. The tribunal disallowed taxing the flat's value under 'Income from other sources'.
The Income Tax Appellate Tribunal (ITAT) ruled in favor of a taxpayer who received a Rs 11.7 crore flat for surrendering tenancy rights in a redevelopment project. ITAT held that surrendering tenancy rights constitutes a capital asset transfer, making the taxpayer eligible for Section 54F exemption. The tribunal disallowed taxing the flat's value under 'Income from other sources'.
