Income from relinquishment of right in property is capital gain

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HIGH COURT OF DELHI

Simka Hotels & Resorts

v.

Deputy Commissioner of Income-tax

W.P.(C) No. 4350 of 2012

C.M. Application No. 9016 of 2012

Date of Pronouncement: 17.01.2013

 

The decision in J.K. Kashyap v. Asstt. CIT [2008] 302 ITR 255 is an authority for the proposition that even when an assessee becomes entitled to an undefined and undivided share in a property, through an agreement, which he later relinquishes, the gain has to be assessed as income from capital gain, and not as income from other sources.