Gains on sale of TDR are not chargeable to tax if cost of acquisition is not ascertainable
Where the assessee, a Co.op Housing Society became entitled, by virtue of the Development Control Regulations, to Transferable Development Rights (TDR) and the same were sold by it for a price to a builder and the question arose whether the transaction of sale receipt could be taxed, HELD that though the TDR was a ‘capital asset’, there being no ‘cost of acquisition’ for the same, the consideration could not be taxed.
Note: ITO vs. Lotia Co.op Hsg. Soc. (ITAT Mumbai) was followed.
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