Sh. Manjula Khanna Vs. Income Tax Officer

Parties Involved

Facts Summary

The case involves the assessment of long-term capital gains of Rs.2,00,00,000/- in the hands of the assessee, Mrs. Manjula Khanna, for the assessment year 2014-15. The gains were assessed due to the transfer of her share in an ancestral house to her sister, Mrs. Meenakshi Vohra. The house was inherited by both sisters, and the assessee's mother had executed a 'Will' bequeathing the house to Mrs. Meenakshi Vohra with a condition that the assessee would receive either 45% of the house's value or Rs.40 lakhs, whichever is lesser. The civil dispute regarding their shares was resolved by the Supreme Court, where the assessee received Rs.2 crores from her sister, which was assessed as long-term capital gains.…

Legal Issues

• 1. Whether the amount received by the assessee in lieu of her share in the ancestral house is taxable as long-term capital gains.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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