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2016 (5) TMI 1532 - ITAT MUMBAIDeduction u/s 54EC - CIT(A) directing AO to assess premium received by appellant company on transfer of tenancy right of the shops from one tenant to another as capital gains - Whether premium received by the assessee company on transfer of tenancy rights of the shops from one tenant to another should be treated as income from other sources and not as capital gains as claimed by the assessee ? - HELD THAT:- We agree with the observations of the CIT(A) that during the course of time the assessee acquired bundle of rights with respect to the impugned shops. These rights include inter-alia, rights of possession in tenancy. As per section 2(14) “capital asset” means property of any kind held by an assessee, whether or not connected with his business or profession. A perusal of this definition shows that the legislature has intended to define the term “capital asset” in the widest possible manner. This definition has been curtailed to the extent of exclusions given in section 2(14) itself which include stock-in-trade and personal effects. The impugned asset does not clearly fall in the aforesaid exclusions given in section 2(14). The bundle of rights acquired by the assessee is undoubtedly valuable in terms of money - The said tenancy rights shall form part of a capital asset in the hands of the assessee and, therefore, any gains arising there from would be assessable under the head ”Income from capital gains” eligible for deduction u/s 54EC - Decided against revenue.
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