TDR is a capital asset as inextricably linked with immovable property

Adi D Vachha Vs ITO (ITAT Mumbai) Assessee has got a right in TDR in lieu of acquisition of immovable property by the Municipal Corporation of Pune. Although, there was no Transferable Development Rights (TDR) was in existence, when the MOU dated 17/08/1996 was entered into by the assesee with third party for transfer of right in TDR, but surplus derived from transfer of TDR rights has been assessed under the head capital gains. During the year under consideration, the assessee has cancelled MOU entered on 17/08/1996 for transfer of TDR, because the purchaser was not willing to wait any more, ...