TaxTMI 
TaxTMI 
2014 (9) TMI 394
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.... and in the circumstances of the case the Tribunal was correct in law in holding that the capital asset transferred was a long term capital asset?" 2. The respondent-assessee, a company, in their return for the assessment year in question had declared long-term capital gains of Rs. 6.78 crores on account of surrender of tenancy rights, which were acquired during the financial year 1972-73 in Jeevan Vihar Building, Parliament Street, New Delhi. The said tenancy right was acquired by way of a written lease executed by the landlord-Life Insurance Corporation of India (LIC) for a period of 3 years commencing from 15th March, 1973. After the end of the said term of 3 years, the respondent assessee continued to occupy the premises as a tenant,....
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....elinquished on 18th February, 1997. Therefore, the period of holding of the tenancy rights was only 18 days and thus, less than 36 months. 4. The Commissioner of Income Tax (Appeals) dismissed the appeal of the respondent-assessee agreeing with the reasons of the Assessing Officer that at the beginning of every month, a new tenancy was created and thus a new capital asset had come into existence on 1st February, 1997. This new tenancy was relinquished on 18th February, 1997, which meant that the period of holding was less than 36 months. The Commissioner of Income Tax (Appeals) further observed that unless the respondent-assessee had paid rent for each month, possession of the property would not have continued. 5. The Tribunal, howeve....
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....ve the original agreement dated 15th March, 1973 on record and we are not aware whether the original agreement was by way of registered instrument or not. In the absence of a registered instrument, it would have resulted in creation of month-to-month tenancy. The said tenancy could be determined by issue of notice under Section 106 of the Transfer of Property Act. 8. Assuming that there was a registered instrument under which the lease was first created on 15th March, 1973, the assessee upon end of the term of the lease would be a tenant by holding over under Section 116 of the Transfer of Property Act. The said section provides that where a tenant after end or determination of the lease, remains in possession of the property and rent is....
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....r of tenancy had taken place on 18th February, 1977 and not before. The period of holding, therefore, was from 15th March, 1973 till 18th February, 1997. No third person, who had come into possession of the property during the period and it is not a case of the Revenue that respondent-assessee did not hold the property during the entire period of over 14 years. 10. We would like to elucidate and explain the expression, "held by the assessee" in some detail. General words should normally receive plain and ordinary construction but this principle is subject to the context in which the words are used as the words reflect the intention of the Legislature. The words have to be construed and interpreted to effectuate the object and purpose of ....
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....s said that a party "holds the affirmative" or negative of an issue in a cause. xxx 8. To possess; to occupy; to be in possession and administration of; as to hold office. 9. To keep; to retain; to maintain possession of or authority over." As per clause 8, the word "hold" means to possesss or occupy, to be in possession and would also include to keep, retain and maintain possession or authority over an asset. 12. The word "held" thus can be interpreted to embrace the idea of actual possession of the assessee. In Budhan Singh versus Babi Bux, AIR 1970 SC 1880 (at page 1884) the word "held" was interpreted to mean "lawfully held, to possess by legal title". The term "legal title" here not only includes ownership, but also titl....