https://www.taxtmi.com/caselaws?id=767876 The ITAT Mumbai held that the amount received by the appellant on surrender of tenancy rights constituted a transfer of a capital asset under section 2(47). The tenancy right was acquired in 1954 by paying a non-refundable deposit, which was treated as the cost of acquisition under sections 49 and 55(2)(a)(i). The appellant was entitled to choose either the actual cost or the fair market value as of 1 April 2001 for computing capital gains. Considering the valuation as on 1 April 2001, the transaction resulted in a net capital loss, which was accepted by the revenue in earlier years. Consequently, the addition made by the AO was deleted, and the appellant's grounds were allowed. en-us Wed, 01 Jan 2025 00:00:00 +0530 Fri, 01 Aug 2025 11:42:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767876 The ITAT Mumbai held that the amount received by the appellant on surrender of tenancy rights constituted a transfer of a capital asset under section 2(47). The tenancy right was acquired in 1954 by paying a non-refundable deposit, which was treated as the cost of acquisition under sections 49 and 55(2)(a)(i). The appellant was entitled to choose either the actual cost or the fair market value as of 1 April 2001 for computing capital gains. Considering the valuation as on 1 April 2001, the transaction resulted in a net capital loss, which was accepted by the revenue in earlier years. Consequently, the addition made by the AO was deleted, and the appellant's grounds were allowed. Case-Laws Income Tax Wed, 01 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767876