COMMNR. OF INCOME TAX, MUMBAI vs D.P. SANDU BROS CHEMBUR (P) LTD.

The Supreme Court addressed whether the amount received for surrendering tenancy rights is subject to capital gains tax under Section 45 of the Income Tax Act, 1961. The Court held that the surrender of tenancy rights constitutes a transfer of a capital asset, and thus, the amount received is a capital receipt. However, it affirmed the Tribunal's decision that capital gains could not be computed due to the inability to ascertain the cost of acquisition, leading to the conclusion that the amount was not exigible to tax under capital gains but could potentially be taxed as income from other sources under Section 10(3) and Section 56.