Capital Gains v. IFOS : Illegally encroached land, not a capital asset; profit on its sale is IFOS

Section 45 read with sections 2(14) and 56, of the Income-tax Act, 1961 — Property illegally encroached by assessee would not be considered as ‘Capital asset’ under section 2(14) and, consequently, gain arising from transfer of such property could not be assessed as capital gain but as income from other sources [Bhagwan T. Fatnani [2015] 58 227 (Mumbai – Trib.)]

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