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TMI Blog2019 (4) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... Gains‘ in the return of income filed with the Revenue. Under these circumstances, we donot find any reasons that when tenancy is recognised as capital asset within meaning of Section 55(2) , as to why sub-tenancy in favour of the assessee cannot be treated as capital asset more so , capital asset is so widely defined u/s 2(14) - decided against revenue - I.T.A. No.6743/Mum/2017 - - - Dated:- 27-2-2019 - SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER For The Revenue : Shri. Rajiv Gubgotra,DR For The Assessee : Shri. H.N Motiwalla And Shri. Dalpat Shah ORDER PER RAMIT KOCHAR, Accountant Member: This appeal, filed by Revenue, being ITA No. 6743/Mum/2017, is directed against appellate order dated 13.09.2017 in appeal no. IT-365/2016-17/114/17-18, passed by learned Commissioner of Income Tax (Appeals)-5 , Mumbai (hereinafter called -the CIT(A)‖), for assessment year 2014-15, the appellate proceedings had arisen before learned CIT(A) from the assessment order dated 29.12.2016 passed by learned Assessing Officer (hereinafter called -the AO‖) u/s 143(3) of the Income-tax Act, 1961 (hereinafter called -the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 24.06.2013. This deed of transfer and assignment of tenancy/occupancy rights was executed and registered with respect to Shop No.1, -C‖ Wing, comprising of ground floor with mezzanine floor situated at Krishna Bhavan at 246, 248, 250 252 Walkeshwar Road, 11, Banganga Cross Road, Mumbai 400006, admeasuring 534.65 sq. Ft. equivalent to 49.72 sq. Meters (carpet area) in the structure no. 2 standing on the land bearing Cadastral Survey no. 123, Walkeshwar Division. The said agreement dated 24.06.2013 was filed before the AO and is placed on record at page 12-41/paper book. It all happened that the assessee wife was granted tenancy by M/s. Nathuram Ramnarayan Private Ltd. , Landlords of the aforesaid premises , vide tenancy agreement dated 17.03.1994 on monthly rental of ₹ 800/- . The copy of tenancy agreement is placed on record in paper book/ page no. 1 to 6. The said premises was to be used by tenant Dr. Rajul J. Shah, for commercial purposes as per terms of the said agreement. The said M/s. Nathuram Ramnarayan P. Ltd i.e. Landlords, vide letter dated. 30.03.1994 permitted Dr. Rajul J. Shah, and her husband i.e. the assessee to run clinic or a polyclinic for their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osition had remained uncontroverted by Revenue as to running of clinic by the assessee from ground floor of said shop and payment of rentals to his wife. The assessee had also brought on record evidences that telephone connection in his name was installed at the said premises which is placed in paper book/ page no. 44 to 45 . The evidence is also brought on record that mobile/internet connection in his name was also installed at the said address, which is placed in paper book at page no. 46 to 48. The assessee was also holding licence for possession of rectified sprit including absolute alcohol for medicinal used by RMP , vide approval dated 21.05.1998 issued by Collector, Mumbai. The assessee also held permission in Form No. ‗K dated 31.01.2001 and 22.02.2010 under Bombay Homeopathic and Biochemic Practitioners Act, 1959 to carry on practice of homeopathy wherein the aforesaid address of the assesssee is shown to be registered address in the records of Maharashtra Council of Homeopathy , which is placed in paper book page no. 50 and 51. The assessee also hold NOC dated 24.10.2007 issued by Maharashtra Council of Homeopathy for further study in India and Abroad(page 52/pb) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ignatory to agreement dated 24.06.2013 as Landlords wherein they were confirming party. The said M/s. Lodha Properties Development P Ltd., has also issued letter dated 16.12.2016 in favour of assessee wherein it confirmed about the entire deed of transfer and assignment of tenancy/occupancy wherein vide para 3 and 4 in the said agreement, the assessee was stated to be having interest in the said property by way of permission from Landlords M/s. Nathuram Ramnarayan P. Ltd which stood transferred under deed dated 24.06.2013 wherein the wife of the assessee who was monthly tenant transferred and assigned her tenancy rights in favour of incoming tenant Dr Maninder Chhabra , wherein the assessee had stood confirming party in the said deed dated 24.06.2013. The said letter dated 16.12.2016 is placed in paper book/page 54-55.The assessee has shown this receipt of ₹ 1,40,00,000/- as income under the head ‗Income from Capital Gains , while the AO was of the view that the said receipts are to be brought to tax under the head ‗Income from other Sources , vide assessment order dated 29.12.2016 passed by the AO u/s 143(3) of the 1961 Act . 5.Aggrieved by the assessment fra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r to get vacant possession of the building the Developers entered into similar agreements with the other tenants and paid consideration to the other tenants, their sub-tenants and other occupiers of the various flats in the building. The sub-tenant / occupier was made confirming party in the agreements by Developers with the other tenants. 2.5 Since the appellant was in occupation of the Ground Floor of the premises given on rent to Dr. Rajal Shah he was made a confirming party. By this agreement the appellant had given up his occupation right in the Ground Floor and given vacant possession to the Developers (through the Incoming Tenant). In consideration for this he was paid ₹ 1,40,00,000/- by cheque dated 21.6.2013 as stated in the agreement. 2.6 The appellant as occupier (sub-tenant) of the premises has filed the following documents with the said AO. (i) Copy of MTNL Telephone Bill dated 30.11.2011 for tel. No. 23643774 which gives his address as Krishna B havon, 250 Walkeshwar Road, Mumbai. (ii) Bill dated 22/11/2011 for his Mobile Phone (9819799337) of Vodafone registered at the above address. (iii) Internet Connection with Tata Photon in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rty has or may acquire or become entitled to hereafter into or upon the said Tenanted Premises including rights to permanent alternate accommodation in the event of redevelopment of the said property by the landlord ............................. (iv) Para 3 of the agreement states as under: - 3 In consideration of aforesaid the Incoming Tenant has agreed to pay aforesaid consideration of a sum of ₹ 3,35,00,000/- (Rupees Three Crores Thirty Five Lakhs only) to the Outgoing Tenant and Confirming party in full and final settlement and on receipt of the same, the Outgoing Tenant and the confirming party shall hand over vacant, quiet and peaceful possession of the said Tenanted Premises to the Incoming Tenant along with the original title documents, if any, on completion of the transaction in the manner stated herein . (v) Para 4 of the agreement states the manner in which consideration for the aforesaid transfer of the respective rights of the Outgoing Tenant and the confirming party is to be paid. Para 4 (ii) refers to payment of consideration of ₹ 140 Lacs to Dr. Jayesh Shah (confirming Party). (vi) Para 5 of the agreement states as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd reasonable doubts of any nature whatsoever. In the event it is found that the Outgoing Tenant's title to the said Tenanted Premises is defective or any claim is made on the said Tenanted Premises or Incoming Tenant suffers any loss or damages by the statements, declarations, representations and assurances made by the Outgoing Tenant and Confirming Party or any claim whether directly or Indirectly is made on the said Tenanted Premises, in that case the Outgoing Tenant / Confirming Party agrees to indemnify and hereby indemnify and keep indemnified the incoming Tenant and / or his successor and assigns against all loss, damages, cost and expenses, which may be suffered by and / or the claims that may be made against the incoming Tenant on account of above and the Outgoing Tenant/Confirming Party shall reimburse the incoming Tenant and/or his successors and assigns for the same. (x) Para 11 of the agreement states as under, 11 The Outgoing Tenant/ Confirming Party have paid all the rent taxes cesses, charges, duties and other outgoings in respect of the said Tenanted Premises till date hereof and thereafter all such outgoing shall be payable by the Incoming Tenant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... buildings or part of a building is transferred together with any machinery, plant, furniture, fittings or other things, such machinery, plant, furniture fittings or other things also Explanation-- For the purposes of this sub-clause, land, building, part of a building, machinery, plant, furniture, fittings and other things include any rights therein; (ii) Therefore, any right of occupation in any immovable property also will be considered as a property i.e. Capita! Asset . 3.3 Section 2 (14) of the Income tax Act defines a Capital Asset to mean Property of any kind held by an assessee, whether or not connected with his business or profession . It is submitted that the term 'Property of any kind will include right of occupation in any property. 3.4 In the case of CIT V/s Miss Piroja C. Patel 122 Taxman 752 (Born) the Hon'ble Bombay High Court has held that On eviction of hutment dwellers from the land in question, the value of the land increased and, therefore, the expenditure incurred for having the land vacated would certainly amount to cost of improvement. Accordingly, the compensation paid by the assessee and other Co-owner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that where land in question was held by the assessee under adverse possession, its cost of acquisition is not. Therefore, it was not chargeable to tax under the provisions of Section 45 on its sale. In such a case expenditure incurred by the assessee in order to defend its possession over land cannot be considered as cost of acquisition incurred by the assessee. The ratio of this decision is that property which is in adverse possession is a Capital Asset. In this case the ITAT has held that there was no cost and hence Section 45 does not apply. (ii) CIT vs. Appukutty 119 Taxmann 637 (Kerala H.C.) In this case it is held as under: M was in possession of the building as tenant and he was conducting his proprietary concern in that building. That was converted into partnership. Thus, the assesse-partnership came into possession of the building in 1962. Apparently, no amount was paid for getting possession. It could be said to be a self-generated asset. It is true that possessory right is different from tenancy right. In Salmond on Jurisprudence, it is stated as follows: 'Possession differs from ownership in another quite different respect. Ownership, as we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inciple had accepted that the assessee was the tenant from whom the rent was being received. The further correspondence between the assessee and its licensor, the purchaser of the land and the assessee are also describing right of the assessee as tenancy right only and the deed executed between purchaser of the premises and the assessee is also described as deed of surrender of tenancy. Thus, the assessee was enjoying a right over the property in the nature of being tenant of the same for the last so many years and that right of the assessee cannot be considered or evaluated much less than the right of tenancy. in view of the above discussion, it is to be held that the assessee, in fact, was enjoying possession of the impugned property and for peaceful vacation thereof it had received the impugned amount which was described by both parties as amount paid for surrender of tenancy rights. The assessee had acquired the said right long back and the licensor to the assessee also had recognized the said right of the assessee. The right of the assessee was undisputed and the nature thereof was 'property of any kind' which was held by the assessee an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere in the agreement and also stated that appellant is only referred as a confirming party. When we examine this deed of transfer and assigning agreement, appellant's wife is mentioned as a outgoing tenant and appellant is stated as a confirming party of the outgoing tenant in the agreement. Further, AO stated that appellant is not mentioned as a sub-tenant, so he does not have any rights. It is true there was no mention of sub-tenant in the agreement, however, everywhere as stated above in the agreement it was stated as outgoing tenant and confirming party. AO referred to the 2 clauses of the agreement and came to the conclusion that appellant is not having any tenancy right. Clause mentioned by AO in assessment order is para G(e) of the agreement which is as under : (e) in the premises aforesaid, the outgoing tenant came to be in sole use, occupation and possession of the said tenanted premises and paying monthly rent at the rate of ₹ 987/- (Rupees Nine Hundred and Eighty Seven only) per month for the same. The electricity bill for commercial purpose disclosing the address of the said tenanted premises stands in her sole name. The copies of the rent receipt and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er person/s including the Confirming Party has/have any lims, share, right, title or interest in to over or upon the said Tenanted Premises or any part thereof and they are absolutely entitled to and competent to and authorized to transfer and/or deal with the said Tenanted Premises. According to the above clause, only tenancy right is with the wife of the appellant and all other persons including the appellant does not have any right. Hence, AO concluded that appellant is not having any tenancy right over the premises. AO had not fully stated the Clause 8 of the agreement. The head note of Clause 8 is 'the Outgoing Tenant along with the Confirming Party covenant with the Incoming Tenant that'. On full reading of this clause along with the head note, it is clear that the Outgoing Tenant along with the Confirming Party after entering in to the agreement with the Incoming Tenant, they will have no rights over the tenanted properties including the confirming party over that premises. Here AO considered part of the clause 8(a) and came to wrong conclusion. If the clause is read with whole head note, it gives totally opposite meaning which is stated above. Here also in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.3.4 In Dwarkadas Shrivas vs Sholapur Spinning Weaving Company. Ltd. AIR 1954 SC 119, 139 where it is held that property is a bundle of rights which owner can lawfully exercise. He is entitled to use and enjoy it as he pleases, provided he does not infringe any law of the state. Property is either corporal or incorporal. According to Supreme Court - Property means having a bundle of rights. When we examine the case of the appellant, appellant was also having right over the property i.e. right to possession which appellant had transferred to the outgoing tenant. This right which appellant had transferred will come under the purview of capital asset as here appellant had occupancy, possession or tenancy rights. Hence these rights will come under the category of capital asset as per the Income Tax Act. 3.3.5 Further if an income has to be considered as income from other sources, as AO assessed here, in CIT vs D.P. Sandu Bros. and Chembur P Ltd. [273 ITR 1] where it is held that it would be illogical and against the section 56 to hold that everything that is exempt from capital gain by a statute would be taken as a casual or non-recurring receipt u/s 10(3) r.w. section 56. A r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loor and mezzanine floor of shop no. 1, Krishna Bhavan and not by the assessee . It was submitted by learned DR that the assessee is claiming to be sub-tenant of the wife of the assessee and compensation of ₹ 1.4 crores was received by the assessee for transfer and assignment of his so called sub-tenancy/occupancy right with respect to this property as the assessee had claimed that it was running its clinic from ground floor of shop no. 1 , Krishna Bhavan, while the fact is that the assessee is not sub-tenant of his wife. Thus, it is claimed by learned DR that the assessee is medical practitioner and was only occupying the premises without any agreement, under permission granted by the then landlords/owners of the shop no.1 , Krishna Bhavan vide letter dated 30.03.1994. Thus, it was submitted that the assessee did not possess any interest in the said property. It was submitted by learned DR that the AO has rightly brought the said income to tax under the head ‗Income from other sources . It was submitted by learned DR that Ld. CIT(A) erred in granting relief to the assessee on this issue. It was submitted by learned DR that the assessee was not sub-tenant and only asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee. The Rent receipts is dated 30.03.1994 which is placed in paper book/page 9. Further , Rent receipts for July and August 2005 are placed in paper book/page 10. Our attention was also drawn to agreement/deed dated 24.06.2013 for transfer/assignment of tenancy/occupancy rights by wife of the assessee Dr Rajula J Shah, outgoing tenant in favour of incoming tenant namely Dr. Maninder Chhabra while the assessee signed the said agreement as confirming party and Lodha Properties Development Private Limited signed the said agreement as Landlords. . The said agreement is placed in paper book/page number 12-41. Our attention was drawn to letter dated 14.11.2016 written by Dr. Rajula J Shah to the AO confirming that she was tenant in the said shop at Krishna Bhavan and was regularly paying rent/taxes . She has stated in the letter dated 14.11.2016 that the assessee was occupying premises since 1994 and was paying rent since 1994. She stated that he was carrying on his clinic from the ground floor of the said shop at Krishna Bhavan while she was carrying on her clinic from mezzanine floor of the said premises. It is also stated by her that she was declaring rental income recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... party. Reliance is placed by learned counsel for the assessee on the decision of Hon ble Gujarat High Court in the case of ACIT v. G.C.Shah Co. reported in (2014)369 ITR 323(Gujarat) and decision of Mumbai-tribunal in the case of Kewal Silk Mills v. ACIT reported in (2013) 21 ITR(T) 121(Mum.-trib.) . Our attention was drawn to page no. 104 of the paper book wherein meaning of tenant has been explained in the order of tribunal in Kewal Silk Mill(supra) by reproducing extracts from decision of Hon ble Supreme Court in the case of Anandram Chandanmal Munot v. Bansilal Chunilal Kabra, AIR 2000 SC 288, which extract is reproduced here under:- 6. The learned authorised representative submitted that the aforementioned position of law of converting licensee into protective tenant and protective sub-tenant regardless of the intention of the original grant either of the lessor or of the lessee has been explained by the hon ble Supreme Court in its decision in the case of Anandram Chandanmal Munot v. Bansilal Chunilal Kabra, AIR 2000 SC 288(copy of this decision filed at pages 43 to 59 of the paper book). He invited our attention towards following observations of the hon ble Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sq. Ft. equivalent to 49.72 sq. Meters (carpet area) in the structure no. 2 standing on the land bearing Cadastral Survey no. 123, Walkeshwar Division since 1994. His wife was also running her clinic from mezzanine floor of the said premises since 01.04.1994 . The wife of the assessee namely Dr. Rajul J. Shah, entered into tenancy agreement with M/s. Nathuram Ramnarayan P. Ltd, vide agreement dated 17.03.1994 which was to be effective from the 01.04.1994 on a monthly rent of ₹ 800/- for the said premises described as ground floor garage premises in the tenancy agreement dated 17.03.1994 . The said tenancy agreement dated 17.03.1994 is placed on record (pb/page 1-6) which undisputedly proves that Dr. Rajul J. Shah, was tenant of the aforesaid premises since 01.04.1994. The Rent receipt dated 30.03.1994 issued by Landlords Nathuram Ramnarayan Private Limited in favour of wife of the assessee Dr. Rajul Jayesh Shah for April 1994 is placed in paper book/page 9. Further, Rent receipt for July/August 2005 are placed in paper book/page 10. The said M/s. Nathuram Ramnarayan P. Ltd., issued letter dated 30.03.1994 in favour of Dr. Rajul J. Shah, wherein said landlord permitted Dr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and for giving peaceful and vacant possession of the premises occupied by her. The assessee has also brought on record several evidences to prove that he was running his clinic for pursuing his practice of medical profession from the ground floor of the said premises. The evidences filed by the assessee are in the nature of telephone , mobile and internet bills installed in the name of the assessee with the said address of Krishna Bhavan shown as assessee s registered, which are placed in paper book page no. 44 to 48. The assessee was also holding licence for possessing rectified sprit including absolute alcohol for the medicinal use by Registered Madical Practitioner(RMP) issued by Collector, Mumbai, vide approval dated 21.05.1998 in favour of the assessee with this address of Krishna Bhavan shown as assessee s registered address(pb/page 49.) . The assessee is also holding registration issued by Maharashtra Council of Homeopathy in favour of the assessee to carry on practice of homeopathy as required under Section 26 of the Bombay Homeopathy and Biochemic Practitioner s Act,1959 , dated 31.01.2001 and 22.02.2010 , wherein the address of the assessee is shown to be of Krishna Bhaw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivate Limited in respect of shop no. 1 , -C‖ Wing, Ground Floor of in the said building -Krishna Bhuvan‖. The said letter dated 16.12.2016 also stipulates that the owners understand that M/s Nathuram Ramnarayan Private Limited had permitted Dr. Rajul Shah and the assessee to run a clinic or a polyclinic from the said tenanted premises subject to approvals from requisite authorities. It is also stated in this letter that vide registered deed of transfer and assignment of tenancy/occupancy dated 24.06.2013 , the said Dr Rajul Shah with the confirmation of her husband said Dr Jayesh Shah assigned and transferred the tenancy rights in respect of the said tenancy rights in respect of the said tenanted premises to Mr. Maninder Chhabra(incoming tenant) for consideration and other terms and conditions as are stated in the said deed. They also confirmed that they acted as confirming party in said agreement dated 24.06.2013. The said letter dated 16.12.2016 was filed before the AO by the assessee (pb/page 54-55) also. Thus, it is claimed by the assessee that he held occupancy/sub-tenancy rights in the ground floor of the said premises at shop no. 1, Krishna Bhuvan uninterruptedly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asset as is contained in Section 2(14) of the 1961 Act is very wide which include property of any kind barring exclusions as are mentioned in the said Section 2(14) of the 1961 Act. The provisions of Section 2(14) of the 1961 Act are reproduced hereunder: Definitions. 2. In this Act, unless the context otherwise requires,- **** **** 14) capital asset means property of any kind held by an assessee, whether or not connected with his business or profession, but does not include- (i) any stock-in-trade, consumable stores or raw materials held for the purposes of his business or profession ; [(ii) personal effects, that is to say, movable property (including wearing apparel and furniture) held for personal use by the assessee or any member of his family dependent on him, but excludes- (a) jewellery; (b) archaeological collections; (c) drawings; (d) paintings; (e) sculptures; or (f) any work of art. Explanation.-For the purposes of this sub-clause, jewellery includes- (a) ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious meta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Bonds, 1991, issued by the Central Government ;] [(vi) Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 notified by the Central Government.] [Explanation.-For the removal of doubts, it is hereby clarified that property includes and shall be deemed to have always included any rights in or in relation to an Indian company, including rights of management or control or any other rights whatsoever;] Section 55(2) of the 1961 Act recognises tenancy rights . In the instant case, it is not the case that sub-tenancy is created in favour of outsider rather the assessee is family member being husband of the tenant of the demised premises . The permission for use of premises for running his clinic was granted by the landlord/owner vide written letter dated 30.03.1994 in favour of the assessee and his wife . The wife is monthly tenant in the said premises. The wife delivered the possession of the ground floor of the said premises to the assessee since 1994. The assessee is holding uninterrupted possession since 1994 and running his clinic from ground floor of the said premises since 1994 for which even payment towards rent to his wife was made by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bhuvan. The assessee was also undisputedly paying rent to his wife for usage of ground floor of said shop for running his homeopathic clinic since 1994 and the wife was including said rental income in her return of income filed with Revenue. The details of said rental income for last five years are reproduced in preceding para s of this order. Thus, we hold that ₹ 1.4 crore received by the assessee from Dr Maninder Chhabra was on account of transfer of capital asset being interest held by the assessee in ground floor of said shop towards occupancy rights which was acquired by way of permission granted by landlord and also with the consent of his wife supported with uninterrupted possession and usage of ground floor of said shop by the assessee since 1994 for running his clinic till the date of agreement i.e. 24.06.2013 (almost 20 years or so) , which was further supported by payment of rent by assessee to his wife for such occupancy/usage of said premises and hence the said sum of ₹ 1,40,00,000/- received by the assessee was rightly been offered to income-tax by the assessee under the head ‗Income from Capital Gains in the return of income filed with the Revenue. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as not open for the department to impose tax on such capital receipts by the assessee under any other head for the A.Y. 1987-88, since, income derived from a source falling under a specific head is to be computed under the appropriate section and no other. A tenancy right is a capital asset and its surrender would attract Section 45 and the gains derived would be assessable, if at all, only under the head 'Capital Gains'. That being so, it cannot be treated as a casual and non-recurring receipt under Section 10(3) and subject to tax under Section 56 of the Act. If the income cannot be taxed under Section 45, it cannot be taxed at all. 5. Thus, from the above discussion, it becomes clear that the appellant-Revenue could have taxed the amount of ₹ 5,00,000/- under the head of 'Capital Gains', which was received towards surrendering of tenancy right from lessor, and not under any other head. We, therefore, do not find that the appellate Tribunal committed any jurisdictional error in passing the impugned order. Reference is also drawn to the decision of ITAT-Mumbai decision in the case of Kewal Silk Mills v. ACIT (2013) 31 taxmann.com 405(Mum-trib.) , ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of the landlord. As per the provisions of section 55(2) tenancy right has been considered to be capital asset. Moreover, the definition of capital asset as per section 2(14) of the Act is wide enough to cover property of any kind and the type of right acquired by the assessee in the property used by it cannot in any manner be said to be less than any kind of property held by the assessee. 16. Apart from the above conclusion it may be mentioned here that the assessee has filed copies of some rent receipts obtained by it from Modern. The first copy of such receipt is at page 25 of the paper book vide which a sum of ₹ 39,000 has been paid by the assessee to Modern on February 9, 2002, by cheque No. 679943 towards rent for the months from July 2001 to December 2001 . The said amount has been duly acknowledge to be received by Modern. The second receipt is dated April 3, 2003 copy of which is placed at page 26 of the paper book which is a receipt dated April 3, 2003, vide which a sum of ₹ 19,500 has been paid by cheque No.621974, dated March 26, 2003 towards rent for month from January 2003 to March, 2003 . The third receipt is dated February 9, 2005 copy of w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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