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Sale of TDRs not taxable if cost of acquisition not determinable
The ITAT recently held that capital gains arising on account of sale of transferable development rights are not taxable if the cost of acquisition is not determinable
In the case, since the assessee did not incur any cost of acquisition to purchase the transferable development rights (TDRs), which were subsequently sold for a gain, the ITAT has held that the gain would not be subject to a levy of capital gains tax. The ITAT followed the Apex Court ruling in the case of BC Srinivas Shetty and Sambhaji Nagar to reach this conclusion.
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