9911796707
TMI Blog2015 (10) TMI 1394X X X X Extracts X X X X X X X X Extracts X X X X ..... med exemption from tax on the said amount under section 54F of the Act on the plea that she had purchased a residential flat at JVPD. The Assessing Officer (hereinafter referred to as the AO) noted from the transfer deed that the assessee had acquired "transferable tenancy rights" and not the "ownership" of the flat. The assessee was referred to as a tenant in the deed of transfer and not as purchaser of the flat. After referring to certain clauses of the deed in question, the AO held that the agreement in question was for the acquisition of tenancy rights and not for the purchase of residential house on ownership basis. He therefore disallowed the claim under section 54F of the Act. 3. The Ld. CIT(A) also upheld the order of the AO. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The said lessee Smt. Madhukanta Bhogilal Shah along with other occupants entered into development agreement with a developer for construction of additional floors/flats on the property in question. Under the said agreement, the said Smt. Madhukanta Bhogilal Shah agreed to grant the tenancy rights in respect of certain flats to the persons to be nominated by the developer upon the completion of additional floors on the existing building. The assessee has purchased rights in one of the flats from the developer, which under the agreement were allotted to him for selling to the intended purchasers. The assessee has paid a sum of Rs. 78,10,001/- as consideration/premium to the developer for obtaining the tenancy rights in the flat in question. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e owner for such transfer/assignment of the tenancy rights. The tenant is also entitled to create mortgage in respect of the tenancy rights in the said flat and also bequeath the tenancy rights in respect of any person. The rights of the assessee in the flat are not the mere tenancy rights but are substantial rights giving the assessee dominion, possession and control over the property in question with transferable rights, which are almost identical to that of an owner of the property. There is no denial that the assessee has purchased the rights in the said flat for residential purposes. 6. It may be observed that the provisions of section 54F of the Act having regard to its beneficial objects are required to be interpreted liberally. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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