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2012 (3) TMI 47 - AT - Income TaxSurrender of leasehold rights – invocation of Section 50C - CIT(A) deleted addition made on account of LTCG on the ground that Section 50C has no application on transfer of leasehold right in building – Held that:- Provisions of Section 50 C will apply on receipt of consideration on transfer of a property, being land or building or both, and not in case of transfer or surrender of tenancy rights. Lessee's rights cannot be treated as ownership rights. There is nothing on the record to suggest that the assessee was owner of the property in question. Further, cost of acquisition of the tenancy rights, in view of the specific provisions of Section 55(2)(a), should have been taken as ‘nil’. This aspect is however tax neutral since qualifying investment u/s 54F is more than the consideration for surrender of these tenancy rights – Decided against the Revenue.
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