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2020 (4) TMI 562 - AT - Income TaxCapital gain - transfer of development rights to the developers - assessee has given the developing right to the housing society - assessee executed agreement with Developers for re-development of the existing building on the said property - whether assessee had not incurred any cost of acquisition on a capital asset and such capital asset does not fall in the category of the capital assets specified in section 55(2)? - HELD THAT:- The facts of the present case is quite similar to the facts of the case New Shailaja Co-operative Housing Society Ltd [2008 (12) TMI 442 - ITAT MUMBAI] wherein also the assessee acquired the land in the year 1972 and constructed the building and subsequently by virtue of Regulation 33(7) of the Development Control Regulations of the Municipal Corporation of Greater Bombay, 1991 (DCR). The assessee became entitled to the additional FSI. The assessee nowhere incurred any cost for the execution of the additional FSI, therefore, the consideration nowhere considered as short/long term capital gain. This controversy has also been adjudicated by Hon’ble High Court in the case of CIT-18 Vs. Sambhaji Nagar Co-operative Hsg Society Ltd [2014 (12) TMI 1069 - BOMBAY HIGH COURT]. Thus finding of the CIT(A) is not justifiable, therefore, we set aside the same and delete the addition - Decide issue in favour of the assessee.
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