https://www.taxtmi.com/caselaws?id=771393 The ITAT Mumbai held that surrender of tenancy rights constitutes capital gains under Section 45, not income from other sources under Section 56(2)(x). The AO incorrectly treated the stamp duty value of a flat received without consideration as taxable income. The tribunal ruled that tenancy rights are capital assets, and their transfer generates capital gains taxable in the hands of the actual owner. Section 54F deduction was allowed against the capital gains since investment was made in a residential flat of equivalent value. The addition under Section 56(2)(x)(b)(B) was deleted, following SC precedent that income falling under a specific head cannot be taxed under another head. en-us Thu, 22 May 2025 00:00:00 +0530 Wed, 20 May 2026 18:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771393 The ITAT Mumbai held that surrender of tenancy rights constitutes capital gains under Section 45, not income from other sources under Section 56(2)(x). The AO incorrectly treated the stamp duty value of a flat received without consideration as taxable income. The tribunal ruled that tenancy rights are capital assets, and their transfer generates capital gains taxable in the hands of the actual owner. Section 54F deduction was allowed against the capital gains since investment was made in a residential flat of equivalent value. The addition under Section 56(2)(x)(b)(B) was deleted, following SC precedent that income falling under a specific head cannot be taxed under another head. Case-Laws Income Tax Thu, 22 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771393