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2014 (5) TMI 478 - AT - Income TaxAssessment order passed on dead person STCG treated as LTCG Expenses incurred on transfer of residential flat Held that:- The notice was issued in the name of the dead person but the assessment has been properly framed in the hands of the legal heir which means that the AO has substituted the deceased with the legal heir there was no infirmity in the legality of the assessment order - The assessee was a tenant since 1960 and that tenancy rights was converted into an ownership rights in a flat by virtue of an agreement with the builder - The flat was subsequently transferred giving rise to Long Term Capital Gain. - Decided against the assessee. Relying upon CIT Vs Abrar Alvi [2000 (3) TMI 20 - BOMBAY High Court] - what was transferred vide sale deed was not tenancy right but the building itself and therefore, cost of ownership rights was to be allowed as deduction for working out capital gains - asset sold by the assessee is the property which was given to him on surrender of tenancy rights - Cost of acquisition of this asset is the market value of the tenancy right as on the point of time when it was surrendered - the assessee came into possession of the sold flat on surrender of his tenancy rights - the flat sold by the assessee is the property which was given to him on surrender of tenancy rights the AO is directed to re-compute the capital gain tax liability by taking the cost of acquisition of the flat as market value of the tenancy right as on the point of time when it was surrendered Decided in favour of Assessee.
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