The ITAT held that the appellant's surrender of tenancy rights...

The ITAT held that the appellant's surrender of tenancy rights constituted a transfer of capital asset under section 2(47). The Tribunal determined that the tenancy right was acquired in 1954 through payment of a non-refundable security deposit of Rs. 1,080, which represented the cost of acquisition under section 55(2)(a)(i). Since the asset was acquired before April 1, 2001, the appellant was entitled to adopt either the fair market value as on that date or the actual cost as the acquisition cost, with indexation benefits under section 48. Based on the valuation certified by a registered government valuer, the transaction resulted in a net capital loss. The ITAT deleted the addition made by the AO, allowing the appellant's grounds of appeal.

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