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2015 (4) TMI 506 - HC - Income TaxCompensation received on surrender of tenancy rights - Taxability in the hands or in the hands of Firm - who is the owner of tenancy right - Payment of rent by Firm - Partners claimed exemption under Section 54EC out such receipt - Held that - We find that the Respondent Assessee had in fact before Assessing Officer pointed out that the Tripartite Agreement was entered into, making Respondent Assessee party thereto was on the insistence of the builders so as to take care of builders apprehension in respect of the said property. It was also pointed out that sale consideration was received by the individual partners and not by the firm from the builders. So far as payment of the rent by the firm is concerned, it was a normal allowable business expenditure of the firm. Thus, both the CIT(A) and the Tribunal have come to a concurrent finding of the fact on examination of evidence that the tenancy of the rental premises belonged to the individual partners and not to the Respondent Assessee. It is also noticed that the amounts received by the partners in the individual capacity, was disclosed in their return of income claiming the benefit of Section 54EC of the Act. - Decided against the revenue.
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