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2015 (6) TMI 1158 - AT - Income TaxCapital gain on tenancy rights transfer - Cost with reference to certain modes of acquisition - AO denied the indexation in view of the provisions of section 55(2)(a) - cost of acquisition of tenancy rights is to be treated as nil, if the assessee has not paid any purchase price for the acquisition of the same - Date of acquisition of tenancy rights by the father of the assessee - Held that:- Since the tenancy rights have been dealt with/discussed in section 55(2)(a), the provisions of section 55(2)(b) are not attracted in the case of the assessee. Section 55(3) states that where cost for which the previous owner acquired the property cannot be ascertained the cost of acquisition to the previous owner will be the fair market value on the date on which the capital asset became the property of the previous owner. Date of acquisition of tenancy rights by the father of the assessee is required to be ascertained and further whether the father of the assessee had acquired the tenancy rights on paying some price or not and whether the provisions of section 55(3) are applicable to the case of the assessee are the questions of facts and law which are required to be determined by way of appreciation of evidence. Photostat copies of the rent receipts shows that there are certain notable differences and discrepancies in the said receipts when the said receipts are compared with each other e.g. the signatures of the landlord Shri Krishanraj Dwarakadas Kapadia appears to be different on different receipts and even there is tampering in dates of receipts and further in one of the receipts the date has been mentioned as 31st Jan 06 by striking off ‘199’. The possibility of any or some of the receipts to be true or correct cannot be ruled out. We restore this issue to the file of the AO with the direction that the AO will give proper opportunity to the assessee to produce the evidences relating to the tenancy rights and cost of the acquisition of the tenancy rights by the father of the assessee in the property in question and thereafter to decide the issue afresh as per provisions of law and in the light of observations made above. Whether the provisions of section 54 are applicable in case of transfer of tenancy rights? - Held that:- A.R. of the assessee has fairly admitted that the issue is covered against the assessee by the decision of the co-ordinate Bench of the Tribunal in the case of “Meher R Surti vs. ITO” (2015 (4) TMI 52 - ITAT MUMBAI). So, the issue raised vide ground No.2 is accordingly dismissed.
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