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2011 (11) TMI 395 - HC - Income TaxAssessbility of amount received for surrender of tenancy right – A.O. taxed it under head 'Income from other sources' on the ground that income cannot be charged under the head of 'Capital Gains' - A.Y. 1993-94 – Held that:- It is not in dispute that tenancy right is a capital asset and amount received on its surrender was a capital receipt. However in present case, Department's stand before the High Court was that the cost of acquisition of the tenancy was incapable of being ascertained. Due to inability to compute the cost of acquisition u/s 48, Section 45 cannot be applied. Since, the said exercise of computation of cost of acquisition was not undertaken by A.O. in the assessment order hence, Court is not required to determine, decide and compute income from capital gains u/s 45 of the Act. Once Section 45 cannot be applied, it is not open to the Department to impose tax on such capital receipt by the assessee under any other section. See Commissioner of Income Tax versus D.P. Sandu Bros. Chembur (P) Ltd. (2005 - TMI - 6153 - SUPREME Court) – Decided against the Revenue.
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