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2012 (2) TMI 215 - AT - Income TaxTaxability on compensation received on transfer of “Development Rights” being the FSI and the “right to load TDR” on the land - capital gain - development agreement with developer - CIT (A) held FSI and TDR to be separate & distinct assets - while TDR did not have a cost, the FSI did and if both were transferred together, there was a “cost” for the “asset” and capital gains was chargeable – assessee contesting the same - Held that:- Receipts on assignment of FSI including originating from the plot of land and/or married to it and right to load consume and use FSI credit by way of TDR which was the subject matter of transfer by the Assessee was a capital asset in respect of which the cost of improvement could not be ascertained and therefore the receipts of consideration for transfer of the said rights cannot be brought to tax as the said receipts will be capital receipts and not capital gain. See CIT vs. B. C. Srinivasa Setty (1981 - TMI - 5845 - SUPREME Court) – Decided in favor of assessee. Contention raised regarding dis-allowance of deduction u/s 24 by A.O. it is held that though the order of the AO or CIT(A) are not clear on this aspect, but the inevitable conclusion that one can reach is that the AO has allowed deduction u/s.24(a) – Decided against the assessee.
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