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2014 (2) TMI 688 - AT - Income TaxTaxability of surplus on sale of Development Rights – Whether the receipt can be treated as capital receipt or not and non-taxable – Held that:- The decision in ACIT vs IGE India Ltd [2013 (12) TMI 235 - ITAT MUMBAI] followed –The TDR is embedded in the land for the purposes of additions made by the owner (or lessee) - The TDR in the form of additional FSI is negotiable by the owner to the buyer/developer only for prospective development - there is no element of cost to the owner – On reading of the various clauses of the development agreement, the sale of TDR was acquired on behalf of the developers and sold normally to the developers (as emerging from the Development Agreement) - This is LTCG, but, does not entail any capital gain tax, as there was no cost involved with the assessee's CHS – the order of the CIT(A) set aside and the AO is directed to delete the addition – Decided in favour of Assessee.
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