The assessee has booked a  flat in a proposed building  in the year 2010. The builder could not complete the building due to not getting the permission from competent authority. In the year 2014 the assessee received the refund of amount and also compensation. The assesseee has claimed the said amount as capital gain. The Assessing Officer assessed the amount as income from other sources  which was affirmed by the CIT (A). On appeal the Tribunal held that the compensation received on extinguishment of rights assessable as capital gains.The Tribunal also observed that the provision of MOFA cannot regulate the taxability of capital gain/loss. Followed ACIT v. Ashwin S. Bhalekar ITA No. 6822/M/ 2016 AY. 2012-13. (ITA No. 6528/ M/2028 dt. 21-1-2021). (AY. 2015-16)