The assessee has paid construction loan to land lord which was never repaid hence, the payment was rightly claimed as cost of acquisition in the computation of capital gains. As the loan   was directly linked to the tenancy rights and it was a consideration for obtaining the rights. Even if the assessee had not paid any amount for purchase of tenancy rights, the nature of rights would remain tenancy rights and this was a capital asset. Section 55(2)(a) of the Act clearly stipulates that in case no price was paid for acquisition of an asset, the cost shall be taken as nil. The assessee had acquired a capital asset in the form of tenancy rights and the transfer of capital asset resulted in capital gains, which were taxable under the head Capital gains. To the extent of investment is specified assets is eligible exemption. (AY. 2016-17)