DCIT-19(1), MUMBAI, PAREL, MUMBAI vs. DINESH GULAB MIRCHANDANI, MUMBAI

ITA 692/MUM/2026Status: DisposedITAT Mumbai30 April 2026AY 2020-2112 pages
AI SummaryDismissed

What were the facts?

The assessee received Rs. 3,67,68,000/- for surrendering tenancy rights, which they treated as long-term capital gains exempt under Section 54F. The Assessing Officer (AO) taxed this amount under 'Income from Other Sources' due to unproven cost of acquisition.

What did the Tribunal hold?

The Tribunal held that tenancy rights are capital assets and their surrender gives rise to capital gains. If a receipt is not taxable under Capital Gains, it cannot be taxed under the residuary head 'Income from Other Sources'.

What were the issues?

Whether the consideration received for surrender of tenancy rights, where cost of acquisition is unproven, can be taxed under 'Income from Other Sources' instead of 'Capital Gains'.

Which sections of the Income-tax Act were involved?

Section 45,Section 54F,Section 55(2)(a),Section 56,Section 143(3),Section 144B,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH MUMBAI

For Appellant: Shri Pradeep Kapasi, Ld. AR
For Respondent: Shri Annavaram Kosuri, Ld. DR
Hearing: 23.04.2026Pronounced: 30.04.2026

PER MAKARAND VASANT MAHADEOKAR, AM: The present appeal is filed by the Revenue against the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi[hereinafter referred to as "CIT(A)"], under section 250 of the Income-tax Act, 1961[hereinafter referred to as "the Act"] dated 27.11.2025, arising out of the 2 Dinesh Gulab Mirchandani assessment order passed by the Assessing Officer under section 143(3) read with section 144B of the Act dated 29.09.2022 for the assessment year 2020–21. Facts of the Case

2.

Briefly stated, the facts of the case are that the assessee is an individual who filed his return of income for the assessment

The order continues below.

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