ITO 19.3.1, MUMBAI vs. VARUN JAISINGH ASHER, MUMBAI

ITA 8251/MUM/2025Status: DisposedITAT Mumbai06 March 2026AY 2020-21Bench: SHRI. GIRISH AGRAWAL (Accountant Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that tenancy rights constitute a capital asset and their surrender is a transfer. The flat received was consideration for this transfer, making it a capital gains transaction, not income from other sources. The assessee was eligible for Section 54F exemption.

What were the facts?

The assessee claimed capital gains exemption under Section 54F for surrendering tenancy rights in a property that was jointly owned by his family. The Assessing Officer (AO) treated the tenancy agreement as a sham and taxed the value of the new flat received under Section 56(2)(x). The CIT(A) deleted the addition.

What were the issues?

Whether the tenancy arrangement was genuine and whether the consideration received for surrendering tenancy rights was taxable under Section 56(2)(x) or eligible for exemption under Section 54F.

Which sections of the Income-tax Act were involved?

Section 54F,Section 56(2)(x),Section 45,Section 48,Section 2(14),Section 2(47)

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, “F” BENCH MUMBAI

Before: SHRI. GIRISH AGRAWAL

For Appellant: Shri. Dharan Gandhi, Ms. Vinita Nara, Shri. Sushil Shengde, SR DR
For Respondent: Shri. Sushil Shengde, SR DR
Hearing: 10.02.2026Pronounced: 06.03.2026

PER ANIKESH BANERJEE [J.M]: Instant appeal of the revenue was preferred against the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as "Ld. CIT(A)"] order passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as "Act") order passed for the Assessment Year 2020-21 date of order 16.09.2025. The impugned order emanated from the order of the Assessment Unit Income Tax Department (hereinafter referred to as "Ld. AO"), order passed u/s. 143(3) r.w.s. 144B of the Act date of order 28.09.2022. 2. Brief facts of the case are that the assessee is an individu

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