One partnership firm allows another partnership firm which are under common partners to just occupy its premises , then after the reconstitution of firm due to some conflicts, the building premises were split between the two reconstituted firms as per the award by an arbitrator. In case of the partnership firm which was just occupying the premises and which was awarded half of the building, the income tax department held that tenancy rights were created and hence it earned a long term capital gain on its relinquishment of its rights. Note that the assesse was using the premises for running its business.
Please help by giving the case laws on this matter in favour of the assessee.
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