https://www.taxtmi.com/caselaws?id=58550 Tenancy rights constitute property and therefore a capital asset under section 2(14) of the Income-tax Act, 1961. Where a tenant later acquires the landlord's remaining rights and the smaller and larger estates merge into a composite estate that is then sold as a single asset, the sale consideration cannot be legally split between the two components. The capital gains computation must instead proceed on the basis of the main estate, with the tenancy right recognised in the cost of acquisition or related computation. In this matter, the taxable surplus was required to be recomputed by taking the value of the tenancy right into account, and the assessment was sent back for fresh computation. en-us Tue, 29 Nov 1983 00:00:00 +0530 Mon, 20 Dec 2010 15:37:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=58550 Tenancy rights constitute property and therefore a capital asset under section 2(14) of the Income-tax Act, 1961. Where a tenant later acquires the landlord's remaining rights and the smaller and larger estates merge into a composite estate that is then sold as a single asset, the sale consideration cannot be legally split between the two components. The capital gains computation must instead proceed on the basis of the main estate, with the tenancy right recognised in the cost of acquisition or related computation. In this matter, the taxable surplus was required to be recomputed by taking the value of the tenancy right into account, and the assessment was sent back for fresh computation. Case-Laws Income Tax Tue, 29 Nov 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=58550