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2013 (11) TMI 832 - AT - Income TaxTaxability of income from Surrender of tenancy rights - capital gains - exemption u/s 54 – Held that:- Surrender of tenancy rights;as contemplated in clause 16 of the impugned agreement;had not taken place during the year under consideration, that there was no taxable event giving rise to capital gains on account of the impugned agreement, that asssessee had not to pay any tax on alleged capital gains - Inspector of the AO had visited the place and from his on-the-spot-report it was proved, beyond doubt, that till he visited the premises alleged transaction had not fructified. Tax has to be paid by an assessee, if he earns some taxable income or some income accrues to him. An unexecuted agreement does not give rise to earning or accrual of income. Tax can be imposed on real income and not on hypothetical income. It is true that a tripartite agreement was entered into among the tenants, including the assessee, developer and the owner of the property. But it is also a fact the because of the orders of the BMC said agreement could not be implemented - Inspector proved that on that particular date property was occupied by the assessee as a tenant, that there was no change in his position vis-à-vis the owner, that rent receipts, electricity and MTNL Bills, Passport proved that assessee was in possession of the tenanted premises – Decided against the Revenue.
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