When Mr Shah, a tenant from Sikka Nagar, Girgaon, Mumbai, filed his income tax return (ITR) on September 28, 2019, reporting an income of Rs 19 lakh, he had no clue that he had to face a lengthy legal battle merely for surrendering his tenancy rights in exchange for a new apartment in his landlord’s property.
After he had filed his ITR, the income tax assessing officer (AO) sent him a tax notice asking him to furnish certain information and documents. Upon verification of these documents and evidence, the AO found out that Shah got flat number 502 at a housing project in Sikka Nagar for surrendering his tenancy rights, through a tripartite agreement dated December 18, 2017. The builder handed over the key to flat number 502 to Shah in April 2019.
