Section 54F:Tenancy rights giving possession,control and transferable rights in flat

Purchase of tenancy rights giving possession, control and transferable right in flat would provide sec. 54F relief

[2015] 57 taxmann.com 23 (Mumbai - Trib.)

IN THE ITAT MUMBAI BENCH 'A'

Archana Parasrampuria

v.

Income-tax Officer, Ward-24 (1) (3), Mumbai

Section 54F, of the Income-tax Act, 1961 - Capital gains - Exemption of, in case of investment in residential house (Owner) - Assessment year 2005-06 - Assessee earned long-term capital gains on sale of shares - She claimed exemption under section 54F on plea that she had purchased a residential flat - Assessing Officer noted from transfer deed that assessee had "transferable tenancy rights" and "not ownership" of flat, therefore disallowed claim under said section – Whether, where rights of assessee in flat were not mere tenancy rights but were substantial rights giving assessee dominion, possession and control over said property with transferable rights, which were almost identical to that of an owner of property, assessee was entitled for exemption - Held, yes [Para 5][In favour of assessee]