The assessee’s mother-in-law occupied a flat on the second floor of a building on licence basis. She had two sons. After her demise, her son occupied the flat with his family. The building was purchased by HME. For vacating the premises, it filed a suit against the occupier of the building. An out of court settlement was entered into under which the assessee received Rs. 25 lakhs for not interfering with the possession of HME. The Assessing Officer held that the amount of Rs. 25 lakhs was consideration in respect of giving up the claim, vacating the premises and handing over possession of the premises, that it was capital gains, which had accrued to the assessee in lieu of relinquishment of rights in the premises. Accordingly, he brought to tax Rs. 25 lakhs in the hands of the assessee as long-term capital gains. The CIT (A) confirmed the addition. Tribunal held that  Commissioner (Appeals) confirmed the action of the amounts received by the assessee as consideration for transfer of possessory rights was not chargeable to tax as capital gains and no transfer of tenancy rights was involved.(AY. 2013-14)