Capital Asset Transfer: Tenancy Rights Surrender Triggers Tax Implications Under Section 45 with Full Section 54F Deduction Allowed

ITAT ruled that the surrender of tenancy rights constitutes a capital asset transfer under Section 45, with potential tax implications for either the assessee or his daughter. The tribunal deleted the addition made under Section 56(2)(x)(b)(B), recognizing the transaction as a capital gains event. The court determined that the deduction under Section 54F is fully allowable, as the new residential flat was acquired at equivalent stamp duty value. The tribunal emphasized that when income falls within a specific head of taxation, it cannot be taxed under another head. Consequently, the assessee's grounds were allowed, and the capital gains tax treatment was upheld with the complete Section 54F deduction permitted. .....

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