2019 (7) TMI 428

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....t of capital gain on sale of TDR development rights without appreciating the fact that the assessee's rights have been extinguished by sale of said TDR/FSI and thus fall within the ambit of capital asset under section 2(14) of the Act. 3. The facts in brief are that during, the year assessee has sold TDR/FSI development rights for Rs. 2.50 crore which was claimed as exempt from income tax. According to the AO the transfer of development rights clearly attracts the capital gain tax as it is a transfer of capital asset. Accordingly, the AO determined the market value of the TDR/FSI rights at Rs. 5,74,23,000/- as per stamp authority valuation as against Rs. 5,00,00,000/- declared by the receipt from sale of TDR and accordingly determined the....

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....ore any receipt on account of sale of TDR/FSI would not result in capital gain assessable to tax. The Ld. A.R. therefore prayed that the appeal of the Revenue may kindly be dismissed as the Ld. CIT(A) has passed the order after following the order of jurisdictional High Court. The relevant portion of the said order has been reproduced below: "Held, dismissing the appeal, that in the case of the assessee the floor space index/transferable development right was generated by the plot itself. There was no cost of acquisition, which had been determined and on the basis of which the Assessing Officer could have proceeded to levy and assess the gains derived as capital gains. Additional floor space index/transferable development right was gener....