https://www.taxtmi.com/caselaws?id=16778 When a lessee purchases the leased property, the lease is extinguished by merger because the same person cannot remain both landlord and tenant. The tenancy or occupancy right therefore has no separate continuing existence after the purchase and cannot be treated independently as part of the cost of acquisition for later capital gains computation. On a subsequent sale of the property, the gain is computed only with reference to the owned flat acquired on purchase. The earlier tenancy right does not survive as a separate capital asset, and the resulting surplus is treated as short-term capital gain. en-us Tue, 15 Sep 1998 00:00:00 +0530 Sat, 12 Sep 2009 12:02:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=16778 When a lessee purchases the leased property, the lease is extinguished by merger because the same person cannot remain both landlord and tenant. The tenancy or occupancy right therefore has no separate continuing existence after the purchase and cannot be treated independently as part of the cost of acquisition for later capital gains computation. On a subsequent sale of the property, the gain is computed only with reference to the owned flat acquired on purchase. The earlier tenancy right does not survive as a separate capital asset, and the resulting surplus is treated as short-term capital gain. Case-Laws Income Tax Tue, 15 Sep 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=16778