As per section 55(2)(a) cost of tenancy rights will be taken as nil. Indexation is not available . If the assessee has paid the amount for acquiring the tenancy the indexation is available . If the assessee received an alternative accommodation the assessee may get the benefit of section 54F subject to other conditions . If the assessee has got the alternative accommodation , the assessee has to ascertain the market value of the flat when the assessee has got the flat on redevelopment . In ACIT v. Shree Krishna Pharmacy (Mum.)(Trib.)(UR) (ITA No 3947/Mum./2016 dt 19-04-2018 “H”)(AY. 2007-08), dismissing the appeal of the revenue the Tribunal held that, value of tenancy rights to be considered for determination of cost of acquisition. The builder has given alternative flat to the assessee only by way of surrender of tenancy rights. Had there been no tenancy rights the builder would not have offered any flat to the assessee on ownership basis. Thus it is valuable right on which cost of acquisition has to be determined. Followed CIT v. CIT v. Abrar Alvi (2001) 247 ITR 312 (Bom.) (HC). The period of holding to be considered when the flat was received on redeployment . Cost will be the market value / stamp duty value on the redevelopment flat .