Section 2(14), 2(47), 45 and 56, of the Income-tax Act, 1961—Capital gain— Income from relinquishing rights under an agreement should be assessed under the head income from capital gains.

Facts: The only issue that in this appeal is whether the revenue authorities were justified in considering the sum of Rs. 45,55,000/- received by the Assessee as income under the head "income from other source" as against the claim of the Assessee that the said sum received is in the nature of capital gains and should be assessed under the head "capital gains".

Held, that income from relinquishing rights under an agreement should be assessed under the head income from capital gains. However, it was found that the AO/CIT(A) have not examined the claim of the Assessee under the head "Capital Gain" in accordance with the provisions of section 48 and also claim for deduction under section 54F. We therefore remand the question of computation of Capital Gain to the AO after due opportunity of being heard afforded to the Assessee. The Appeal of the Assessee is accordingly treated as allowed for statistical purpose. - CHANDRASHEKAR NAGANAGOUDA PATIL V/s DEPUTY CIT - [2020] 26 ITCD Online 141 (ITAT-BANGALORE)