Sale of tenancy right house

1 Assesee acquired Capital Assets i.e tenancy right by inheritance i.e. from father under family statement and paid Rs.500000/- to other legal hiers on 19th November 1998 for tenancy right in residential Room in proper room.

2 In July 2005 one builder jointly with the landlord of the building agreed to convert this tenancy right into ownership right at NIL cost to assessee under the project of redevelopment of building and builder issued new flat in redeveloped building in the year 2010.

3 Now the flat is sold in the year 2023-24. What will be the cost of the flat??


A )Since the tenancy right is acquired prior to 1st April 2001 can assessee take FMV as on 01-04-2001 and then to arrive at index Cost of Flat in 2023-24 for computing LTCG- by applying Sec55(2)(a).

OR

B) since the ownership right is Created in 2005 then so take FMV in 2005 as cost of purchase and apply cost of indexation and arrive at indexed cost of flat in 2023-24 for computing LTCG- BY Applying Sec. 55(2)(b).