|Question And Answer|
|Subject:||tenancy ve landlord|
|Answered by:||Advocate Shashi Ashok Bekal|
|Tags:||Capital Gains, Tenancy right|
|Date:||February 26, 2023|
Mr A transfers his tenancy right in one outside bldg and earns capital gain thereon .
He now reinvests the same in acquiring tenancy rights from a tenant in another building where he is landlord himself
Is he eligible u/s 5454F or any other section for exemption ?
: Transfer of Tenancy right is not a transfer of a residential house property. Therefore, section 54 of the Income-tax Act, 1961 (Act) cannot be applied. Section 54F of the Act will apply provided other conditions are satisfied.
The Hon’ble Income-tax Appellate Tribunal – Mumbai Bench in the case of Meher R. Surti v. ITO  40 taxmann.com 138 (Mumbai) held that Where the assessee was not the owner of the property but held meretenancy rights in respect of property, exemption under section54 of the Act was not allowable.