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2022 (2) TMI 646 - ITAT MUMBAILTCG - Gain on sale of transferable development rights[TDR] - whether the sale consideration received on transfer of transferable development right was taxable as a long-term capital gain in the hands of the assessee or not? - HELD THAT:- We hold that the consideration received by the assessee on sale of transferable development rights not chargeable to tax under the head capital gain in view of the fact that there is no cost of acquisition. We are also conscious of the fact that the learned assessing officer when raised the issue of chargeability of the above sum Under the head capital gain, initially the assessee contended that there is no cost of acquisition in respect of the transfer of the asset and therefore that capital gain being the resultant transaction could not be chargeable however letter on the assessee submitted a valuation report during the assessment proceedings of Mr. K C Gandhi & co dated 13/3/1989 valuing the asset as on 31/3/1986 at ₹ 666,000. This order has stated that as the ownership of the land was vested with the assessee in consequence to execution of a deed of assignment on 20/10/1973 by assignor Mrs. Lilavati R SHelat in favour of the assessee and other coowner for the value specified therein, therefore the above cost of acquisition was derived by the assessee. However, that does not change the stand of the assessee that there is no cost of acquisition incurred by the assessee in respect of the asset transferred. In view of the above facts, we do not find any infirmity in the order of the learned CIT – A in holding that receipts against the sale of TDR are not chargeable to capital gain tax.
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