In view of the aforesaid principles of law, we find that the payment of Rs. 24 crores to Group A is to equalize the inequalities in partition of the assets of M/s. Hind Samachar Ltd. The amount so paid is Immovable property. If such amount is to be treated as income liable to tax, the inequalities would set in as the share of the recipient will diminish to the extent of tax. Since the amount paid during the course of partition is to settle the inequalities in partition, therefore deemed to be Immovable property. Such amount is not an income liable to tax. Thus, the amount of owelty i.e. compensation deposited by Group B is to equalize the partition represents Immovable property and will not attract capital gain.
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ITA Nos. 353 and 354 of 2011
Assessment Year: 2007-2008
Decided On: 10.01.2013
Commissioner of Income Tax-II Vs. Ashwani Chopra
[Alongwith ITA Nos. 355 and 356 of 2011]
Hon'ble Judges/Coram:
Hemant Gupta and Ritu Bahri, JJ.
