The assessee is an HUF on surrender of tenancy rights  received compensation of Rs 50 lakhs  which was  invested in capital bonds and claimed exemption u/s 54EC of the Act . The AO treated the amount received on surrender of  tenancy rights as income from other sources and denied the exemption u/s 54EC of the Act . Order of the AO is affirmed by the Tribunal .   On appeal  by the assessee allowing the appeal of  the High Court held that the assessee had disclosed the amount of Rs.50 lakhs  received from M/s. Carlton Coats Pvt.  Ltd. for  settlement of its claim to the property and had further disclosed that the said amount was invested in capital bonds. Thus the said amount was received by the assessee as long term capital gains in view of surrender  of rights by the assessee vis-a-vis the property in question. In the circumstances, merely  on the basis of suspicion, the revenue authorities ought not to have rejected  the claim of the assessee that the said amount was received as long term capital gains  but to treat the said amount as income from other sources .  (ITA No. 4511/Mum/2016 dt 24-08-2016, (AY. 2009- 10).)  ITA No 1219 of  2017 dt 27 -01 -2020