The assessee was a tenant of a premises. A consent decree dated 28-5-1999 came to be passed in a civil suit wherein the plaintiff recognized the right of the assessee in respect of the premises to convert tenancy of the assessee on ownership basis, on terms and conditions as set out in the consent terms. In pursuance of consent terms, an agreement dated 4-11-2004 came to be entered between the developer and the assessee and other tenants and the co-owners/plaintiff as the confirming party. On 22-2-2007, a deed of confirmation under which the rights of the parties which stood crystallized and recognized under the agreement dated 4-11-2004 came to be executed and registered. The AO held that the  document was required to be considered as the sale value of the rights which were acquired by the assessee in the year 1986 from the original owner for long-term capital gains to be taxed for the assessment year 2007-08.

The Commissioner(Appeals) held that no transfer had taken place in the assessment year 2007-08 as the assessee had acquired ownership rights in assessment year 2000-01, hence deleted the addition. On appeal the Tribunal held that the agreement dated 4-11-2004 as the relevant date, by virtue of which the transfer of rights in favour of the assessee had taken place.  Other grounds were not adjudicated. Matter remanded back to the Tribunal for  re adjudicating the issue. Followed    Pokhraj Hirachand v. CIT [1963] 49 ITR 293 (Bom)(HC).  (AY. 2007-08)