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2015 (2) TMI 901 - HC - Income TaxSurrender of sub-tenancy right - capital gain v/s casual income - Held that:- As decided in CIT v. D. P. Sandu Bros., Chembur P. Ltd. [2005 (1) TMI 13 - SUPREME Court] a tenancy right is a capital asset and its surrender would attract section 45 and the gains derived would be assessable, if at all, only under the head 'Capital gains'. That being so, it cannot be treated as a casual and nonrecurring receipt under section 10(3) and subject to tax under section 56 of the Act. If the income cannot be taxed under section 45, it cannot be taxed at all. Thus it becomes clear that the appellant- Revenue could have taxed the amount of ₹ 5,00,000 under the head of "Capital gains", which was received towards surrendering of tenancy right from the lessor and not under any other head. - ITAT correctly decided matter - Decided in favour of assessee.
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