What can be a "Income head"- for receipt of TDR - Fungible transferrable FSI from Municipal authority for DP affacted area as relinqusihed rights to acquisition , as LTCG / Business Income / Income from Other Sources is applicable, also how to TREAT INCOME RECEIPT , once you SELL -TRANSFER this TDR certificate ( floating FSI) to others , within a year, or after 3 years of receipt of TDR certificate from Municipal authority.
As TDR certificate is genearted by Municipal Authority, once DP affected area ( held by you for more than 3 years) is RELINQUISHED being its owner / possessor by a Regisered conveyance deed ( payment of stamp duty and reg.fees), such that it attarcts provision of sec.45.. so I feel it is a case of LTCG .. but case laws says someting contrary to this
In CIT vs. B.C. Srinivas Setty 128 ITR 294, the Supreme Court laid down the proposition that a gain arising from the trnasfer of an asset for which no cost could be identified would be outside the computation provisions of Section 48 of the Income Tax Act, 1961.
2. The Delhi High Court in the case of CIT vs. Merchandison Pvt. Ltd. (1990) 40 Taxman 68 , held thant no tax on Capital Gains could be levied in respect of the consideration received on transfer of a tenancy right.
3. Syndicate Bank Ltd. Vs. Addl. CIT (1985), 155 ITR 681 (Kar.)
4. B.G. Shah vs. CIT (1986) 162.
5. CIT vs. H.H. Maharaja Sahib Shri Lokendra Singhhi (1986) 162 ITR 93 (M.P.).
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