9911796707
TMI Blog2017 (2) TMI 1467X X X X Extracts X X X X X X X X Extracts X X X X ..... essments were framed by the ACIT Central Circle-4(3), Mumbai for the Assessment Years 2007-08, 2008-09, 2009-10, 2010-11 & 2011-12 vide his orders dated 30-11-2012, 06-12-2012, 29-11-2013 u/s 143(3) read with section 153A of the Income Tax Act, 1961 (hereinafter 'the Act'). 2. The only common issue in these four appeal of Revenue is as regards to the order of CIT(A) directing the AO to assess the premium received on account of the tenancy rights to assess the same as capital gain as against assessment by AO as income from other sources. For all these four years, the Revenue has raised identical worded grounds except the quantum. The learned Counsel for the assessee as well as the learned Sr. DR agreed that the facts and circumstances are e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y had filed its return of income on 19th November, 2007 declaring total income of Rs. 14,48,419/- which included capital gains on transfer of tenancy rights amounting to Rs. 54,70,000/-. The said return of income was processed u/s 143(1) of the Act. Thereafter, the assessment was re-opened on 26th March, 2012 u/s. 147 of the Act on the ground that in the case of the assessee company for assessment year 2009-10 the Assessing Officer held that the said premium received on transfer of tenancy rights is taxable under the head "income from other sources". The Assessing Officer passed the order under section 143(3) read with section 147 of the Act for assessment year 2007-08 and held that the aggregate premium received by the assessee company on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Tribunal. 5. On the other hand, the learned Counsel for the assessee argued that the Revenue i.e. the AO while passing the assessment order for assessment year 2005-06 under section 143(3) of the Act taxed the premium on transfer of tenancy rights as capital gains and also allowed deduction under section 54EC of the Act. The learned Counsel also argued that even for the assessment year 2006-07, the AO assessed under section 143(3) of the Act and taxed this premium on transfer of tenancy rights as capital gain and also allowed deduction under section 54EC of the Act. The assessee submitted the details of assessment as under: - Assessment Year Premium received on transfer of tenancy rights Capital gains offered for &nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndoubtedly valuable in terms o money. In our view, the said tenancy rights shall form part of a capital asset in the hands of the assesse and, therefore, any gains arising therefrom would be assessable under the head "Income from capital gains eligible for deduction u/s S4EC of the Act. Under these circumstances we find that the findings of the Id. CIT(A) are well reasoned and in accordance with taw and facts and do not require any interference. Accordingly, the order of Id. CIT(A) is upheld." 7. In our view, of this the learned Counsel for the assessee argued that the concept of consistency should be followed by the Revenue as Revenue itself has assessed this premium of tenancy rights as capital gains for assessment year 2005-06 & 2006-07 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owner of Seth Muiji Jetha Cloth Market. During the assessment proceedings for A.Y. 2009-10, it was seen that the assessee had shown the premium received on the transfer of the tenancy as Long Term Capital Gains. Further it had also claimed exemption under section 54EC against such long term capital gains. The assessee is the owner of the Seth Mulji Jetha Cloth Market, which have been let out to different tenant. On transfer of the tenancy from outgoing tenant to the incoming tenant, the assessee receives an amount which is termed as premium on their transfer of tenancy rights cannot be taxed as capital gains in the hands of the assessee because there is no transfer of asset in the hands of the assessee. Even after the transfer of the tenanc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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