Tenancy Rights Transfer Taxable Only on Possession: STCG Addition Deleted

Jigar Sevantilal Shah Vs ITO (ITAT Mumbai) Tenancy Rights Transfer Taxable Only on Possession: STCG Addition Deleted The AO taxed ₹1.10 crore as Short-Term Capital Gain (STCG) on alleged surrender of tenancy rights during the year, based on stamp duty valuation. The assessee contended that surrender would occur only upon receiving possession of the new flat, as per the redevelopment agreement. The ITAT examined the tripartite agreement and held that tenancy rights do not extinguish merely on handing over possession for redevelopment. They continue until the assessee receives permanent altern...