Illegally encroached land is not a capital asset; profit arising on its sale is taxable as income from other source

Illegally encroached land is not a capital asset; profit arising on its sale is taxable as income from other source
June 29, 2015[2015]  (Mumbai – Trib.)

IT: 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

IN THE ITAT MUMBAI BENCH ‘B’

Income-tax Officer, 21(3)(1), Mumbai v. Bhagwan T. Fatnani