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2010 (5) TMI 839 - ITAT MUMBAIValuation of cost of acquisition of FSI and TDR - HELD THAT:- We are of the opinion that the Ld. CIT(A) was right in assessing the transfer of FSI/TDR under the head "capital gain" instead of assessing the same under the head "income from other sources". However, as there is no cost of acquisition of the asset transferred, there will be no liability to capital gains. ''Ld. CIT (A) held that Once it has been decided that sale of FSI in the form of development rights results into capital gains, it is crystal clear that the compensation received by the appellant has to be assessed as capital gains. The loading of TDR has been possible on the plot of land in question only on account of the ownership right of the appellant subsisting in the piece of land. Transfer of such TDR to the developer through development agreement, therefore, clearly results in capital gains. The AO is, accordingly, directed that the gain arising on transfer of FSI/TDR rights be assessed as capital gain for which he will make the necessary calculation of sale consideration and cost of acquisition and/or improvement. He will also allow exemption u/s. 54 and 54EC to the extent of investments made, after due verification.'' Similar view has been taken in the case of Jethalal D. Mehta vs Dy. CIT [2005 (1) TMI 595 - ITAT MUMBAI] and Maheshwar Prakash[2008 (5) TMI 455 - ITAT MUMBAI]. In the result, the appeal filed by the Revenue is dismissed.
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