Case Law Details
ITO Vs Mr. Deepak Talakshi Shah (ITAT Mumbai)
Hon’ble Bombay High Court in the case of CIT vs. Sambhaji Nagar Co-op. Hsg. Society Ltd. has held that in case of sale of FSI/TDR rights by the assessee to the developers which have accrued in favour of the assessee following promulgation of Development Control Rules for Greater Mumbai, 1991 and the said developmental right were generated by the plot itself and there is no cost of acquisition and therefore not liable for any capital gain tax.
FULL TEXT OF THE ITAT JUDGEMENT
The present appeal has been preferred by the Revenue against the order dated 29.04.2013 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2010-11.
2. The issue raised in ground No.1 of appeal is against the deletion of addition by Ld. CIT(A) as made by the AO on account 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.
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