https://www.taxtmi.com/caselaws?id=62625 Consideration received on surrender of tenancy rights is treated as a capital receipt because tenancy rights are an interest in property and their surrender constitutes a transfer by extinguishment of possessory rights. The receipt is therefore, in principle, chargeable only under the capital gains head; however, where the cost of acquisition is nil and the computation mechanism fails, it cannot be brought to tax as capital gains. It also cannot be assessed as casual or non-recurring income merely because it is a one-time receipt, since section 10(3) applies only to receipts that already bear the character of income. en-us Thu, 25 Feb 1999 00:00:00 +0530 Sat, 18 Feb 2017 17:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=62625 Consideration received on surrender of tenancy rights is treated as a capital receipt because tenancy rights are an interest in property and their surrender constitutes a transfer by extinguishment of possessory rights. The receipt is therefore, in principle, chargeable only under the capital gains head; however, where the cost of acquisition is nil and the computation mechanism fails, it cannot be brought to tax as capital gains. It also cannot be assessed as casual or non-recurring income merely because it is a one-time receipt, since section 10(3) applies only to receipts that already bear the character of income. Case-Laws Income Tax Thu, 25 Feb 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=62625