1981 (5) TMI 42

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....ed to tax the same as capital gains. As the tenancy rights was self generated and was not purchased as such for a consideration, it was contended that no capital gains should be levied. This contention was rejected by the ITO. The Commr. (Appeals) notice that the Bombay High Court had held in Cooper's Case (ITA No. 59 of 1977, decided on 20th June, 1977) that when a landlord allots ownership premises to a tenant on the tenant surrendering his tenancy rights in respect of another premises, no capital gains tax arises. The Supreme Court refused to grant leave to appeal to the department after the Bombay High Court rejected the reference application. Having regard to the decision, the Commr. (Appeals) decided against the department. 2. The ....

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.... Accommodation could be obtained only in the subsequent year. It was argued that the actual transfer of the premises was effected legally by the co-operative housing society only in the subsequent year. In this view of the matter, it was contended that no capital gains should be levied for the asst. yr. 1976-77. The ITO, however, rejected the assessee's plea on the ground that the shares were transferred by the assessee in the co-operative housing society to the transferee in January, 1976. Itself the Managing Committee of the co-operative housing society approved the transfer. However, the law at the relevant time was that a transfer could not be considered as complete unless a 'no objection' certificate was obtained from the Controller of....

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....to the letter written to the assessee on 6th Aug, 1976 by the co-operative society wherein the assessee was advised to obtain the 'no objection' certificate. On 15th Sep, 1976, the assessee's advocate wrote to the housing society stating that the no objection certificate had been received and that the shares and the flat should be transferred from the assessee in favour of Cdr. Badve Even the document of transfer of shares and evidenced by the certificate issued by the housing society states that on 3rd Sep, 1976 the actual transfer was authorised by the society though the membership of Cdr. Badve was approved by the Managing Committee on 17th Jan, 1976. The no objection certificate itself was received on 2nd Sep, 1976 by the society. It ma....