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2011 (11) TMI 83 - HC - Income TaxCapital receipt versus casual and non-recurring income - Whether the Tribunal was right in holding that Section 10(3) of the Income Tax Act, 1961 was not applicable and that the amount received for surrender of tenancy right was not assessable to tax under the Income-Tax Act, 1961 - Held that:- tenancy rights are a capital asset and consideration received for surrender of the tenancy right is capital in nature. Further, once it is held that the income received was of capital nature, it cannot be brought in tax under Section 10(3) as casual income of non-recurring nature. - A similar situation had had arisen in the case of D.P. Sandu Bros. Chembur (P) Ltd. (2005 -TMI - 6153 - SUPREME Court) and the Supreme Court had refused to examine and go into the said question, in view of the stand taken by the Revenue that it was not possible to compute the cost of acquisition of the tenancy rights when they were acquired. - Decided in favor of assessee.
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