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The Economic Times
The Economic Times
Neelanjit Das

Tenant wins tax relief on Rs 38.62 lakh sale of landlord’s property, received for surrendering tenancy rights; know why ITAT Mumbai ruled in his favour

Back in 2007, Mr Ghanshyam from Dahisar (East) was told by his landlord that the entire apartment complex would be redeveloped and if he gave up his tenancy rights, he would receive permanent property in the same complex. Ghandhyam accepted this offer and vacated the rented property.

Subsequently when the builder finished the redevelopment work in 2010, the landlord gave him a permanent property in the same society located on V.P Road, Girgaum, Mumbai. In legal terms, this new property is referred to as Permanent Alternate Accommodation (PAA) in exchange for surrendering tenancy rights in a property stated for redevelopment.

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