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The Tax PublishersITA No. 57 of 2017
2019 TaxPub(DT) 2894 (Bom-HC)INCOME TAX ACT, 1961
Section 45
Following CIT v. Sambhaji Nagar Co-op. Hsg. Society Ltd., Tribunal rightly held that TDR (Transferrable Development Right) which was generated by the plot/property/land and came to be transferred under a document in favour of purchaser would not result in taxable capital gains.
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Capital gains - Chargeability - Sale of additional TDR - TDR (Transferable development rights) /FSI (Floor Space Index)
Revenue challenged the order of Tribunal in including the TDR (Transferable development rights) /FSI (Floor Space Index) value into the computation of capital gain provided assessee had merely transferred reversionary right in the lease land. Held: Following CIT v. Sambhaji Nagar Co-op. Hsg. Society Ltd. (2015) 370 ITR 325 (Bom) : 2015 TaxPub(DT) 0325 (Bom-HC), Tribunal was in no error in concluding that the TDR which was generated by the plot/property/land and came to be transferred under a document in favour of the purchaser would not result in the gains being assessed to capital gains. An asset, which is capable of acquisition at a cost, would be included within the provisions pertaining to the head 'Capital gains' as opposed to assets in the acquisition of which no cost at all can be conceived.
REFERRED : CIT v. BC Srinivasa Setty (and Other Appeals) (1981) 128 ITR 294 (SC) : 1981 TaxPub(DT) 0902 (SC), CIT v. Sambhaji Nagar Co-op. Hsg. Society Ltd. (2015) 370 ITR 325 (Bom) : 2015 TaxPub(DT) 0325 (Bom-HC) and New Shailaja Co-operative Housing Society Ltd. v. ITO (2010) 36 SOT 19 (MUM.) (URO) : 2009 TaxPub(DT) 1126 (Mum-Trib)
FAVOUR : In assessee's favour
A.Y. :
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