Law:

Section:

Section 45 of the Income-tax Act, 1961 - Capital gains - Chargeable as Where assessee entered into a sale deed in respect of a land with MC Ltd. and a separate agreement with same party regarding easement rights, since that sale deed itself mentioned with regard to right of use of road by MC Ltd. there was no reason why separate agreement for a sum of Rs. 42 lakhs granting right to use road should have been executed between parties and, as such, Tribunal was justified in holding two agreements to be composite and holding amount received for alleged transfer of easement rights also as capital gain [Assessment year 2001-02] [In favour of revenue] Endeavour Estates (P.) Ltd. v. Asstt. CIT [2009] 316 ITR 250 (Kar.) The assessee had executed a sale deed in favour of MC Ltd. on 30-3-1999, for sale of three acres of land together with building constructed thereon for a total sum of Rs. 2,50,00,000. On the same date, a separate agreement was entered into between the parties granting right of way to MC Ltd. to gain access to the land and building purchased by it. This agreement was valued at Rs. 42 lakhs. According to the assessee, both the transactions were different. At the time of assessment under section 144, long-term capital gain was computed at Rs. 42,77,421. Afterwards the assessment was reopened on 17-3-2004, on the ground that for the assessment year 2001-02, the assessee had shown an amount of Rs. 41 lakhs under the head liabilities. On enquiry, it was clarified that this amount related to sale of right to gain access to the property purchased by MC Ltd. The Assessing Officer considered the sale deed executed by the assessee in favour of MC Ltd. and referred to para 2 thereof which mentioned that the right of way for the ingress and egress between the schedule property and the nearest road with all other privileges, easements, rights, incidental to the ownership and enjoyment of the schedule property had been provided. Thus, considering the different clauses of the sale deed, it was held that it was a composite sale deed of land, building and right of way. In this view of the matter receipt of Rs. 42 lakhs said to have been received by the assessee from MC…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492