9911796707
TMI Blog2014 (5) TMI 478X X X X Extracts X X X X X X X X Extracts X X X X ..... ital Gain. - Decided against the assessee. Relying upon CIT Vs Abrar Alvi [2000 (3) TMI 20 - BOMBAY High Court] - what was transferred vide sale deed was not tenancy right but the building itself and therefore, cost of ownership rights was to be allowed as deduction for working out capital gains - asset sold by the assessee is the property which was given to him on surrender of tenancy rights - Cost of acquisition of this asset is the market value of the tenancy right as on the point of time when it was surrendered - the assessee came into possession of the sold flat on surrender of his tenancy rights - the flat sold by the assessee is the property which was given to him on surrender of tenancy rights – the AO is directed to re-compute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sale of property and the expenses claimed thereon. After considering the details filed by the assessee, the AO observed that the assessee has been allotted flat which he has sold , free of cost, by the developers in lieu of surrendering/vacating the tenanted structure. The assessee got the possession of the flat vide agreement dt. 15.7.2005. The AO further observed that the assessee has sold his tenancy rights to the developer who in turn has provided the assessee with a house of the same size, free of cost. The AO was of the firm belief that since the assessee became the owner of the said flat on 15.7.2005 and the property has been sold within a period of 36 months, the gains arising on the transfer is to be taxed as Short term Capita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) further observed that since the flat was sold within a period of 36 months, the gain arising on transfer has been rightly treated as Short Term Capital Gain. The Ld. CIT(A) confirmed the action of the AO. The Ld. CIT(A) further rejected the admission of additional evidence relating to the valuation of the flat as on 15.7.2005 holding that there is no cost of acquisition of the new flat. 5. Aggrieved by this, the assessee is before us. The Ld. Counsel for the assessee started with the additional plea that the AO has erred in issuing notices on a dead person and therefore the assessment is bad in law. To substantiate, the Ld. Counsel relied upon various judicial decisions filed before us in the form of paper book. 6. We have carefu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the property which was given to him on surrender of tenancy rights. Cost of acquisition of this asset is the market value of the tenancy right as on the point of time when it was surrendered. It is not in dispute that the assessee came into possession of the sold flat on surrender of his tenancy rights. It is also not in dispute that the flat sold by the assessee is the property which was given to him on surrender of tenancy rights. 6.2. Drawing support from the decision of the Hon ble Jurisdictional High Court in the case of Abrar Alvi (supra), we direct the AO to recompute the capital gain tax liability by taking the cost of acquisition of the flat as market value of the tenancy right as on the point of time when it was surrendered. We ..... X X X X Extracts X X X X X X X X Extracts X X X X
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