No capital gains tax on sale of TDRs in absence of cost of acquisition

ITO Vs Kirit Raojibhai Patel (ITAT Mumbai)

Sale of transferable development rights did not attract capital gains tax since the cost of acquisition for the same did not exist.

Held: AO held that transferable development rights (TDRs) arising out of an existing land was an immovable property, the transfer of such TDRs amounted to transfer of a long term capital asset, and hence assessee was liable to be taxed for the consideration received on them under the head “Capital gains.” Assessee had

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