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2019 (1) TMI 545 - HC - Income TaxCompensation received from transfer of development rights - taxabilty under the provisions of long term capital gains - Transfer of Development Rights (TDR) - computation of the sale of TDR – Held that:- The entire issue is squarely covered by the Judgment of Division Bench of this Court in the case of Sambhaji Nagar Co-op. Hsg. Society Ltd. [2014 (12) TMI 1069 - BOMBAY HIGH COURT] the land and building earlier in the possession of the Assessee continued to remain with it. Even after the transfer of the right or the additional FSI, the position did not undergo any change. The Revenue could not point out any particular asset as specified in sub-section (2) of section 55. Taxing the value of 3 fats as a capital ½ gain, the Revenue has proceeded on completely erroneous basis. The assessee had withheld portion of available FSI for 3 ½ fats which was constructed by the builder at the cost of the assessee and the fats were thus acquired by the assessee. All this was part of argument between the assessee and the builder. In any case, once we hold that any receipt from transfer of TDR in the present case cannot be taxed as a capital gain and this question would itself become academic. Tax Appeal is dismissed.
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