No Tax on Redevelopment Flats u/s 56(2)(x) of Income Tax Act: ITAT

The ITAT ruled that there is no tax on redevelopment flats under Section [presumably 54] of the Income Tax Act. The tribunal held that the allotment of a new flat in a redevelopment project does not constitute a transfer liable to capital gains tax, provided certain conditions are met. This decision provides clarity to homeowners participating in redevelopment schemes. It offers tax relief on the acquisition of new flats in such projects. The ruling encourages urban redevelopment by mitigating potential tax burdens on existing property owners.