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2006 (3) TMI 81 - HC - Income TaxCapital gains - "Whether Tribunal was correct in construing the sub-lease agreement and holding that the deposit received by the assessee was a consideration for granting sub-lease of the assessee's rights and not a payment of monthly rent in advance and as such liable to tax as short-term capital gains?" = the excess realised on the alienation of the asset over and above the cost of the lease rights is assessable to short-term capital gains. The assessee has to pay lease rent of Rs. 300 per month and the cost of lease right will be taken at 12 1/2 times the lease rent payable per annum which works out to Rs. 37,500. The assessee also paid premium of Rs. 5,000 which is non-refundable. Therefore, the total cost in the hands of the assessee works out to Rs. 42,500. Therefore, the difference of Rs. 3,87,500 will be assessed to short-term capital gains. Penalty proceedings under section 271(1)(c) are separately initiated." Therefore, we do not find any merit in the contentions raised on behalf of the assessee and the reference is answered in favour of the Revenue
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