Capital gains tax not applicable when the cost of improvemen​t not ascertaina​ble

Transfer of right to use FSI and load additional TDR on a plot of land not chargeable to capital gains tax, as the cost of acquisition of the right to load TDR not ascertainable; Right to load TDR under Development Control Regulations 1991 as an ‘owner of receiving plot’ amounts to improvement to the capital asset;  Cost of such improvement to capital asset cannot be determined and it could not be acquired by paying a price;  Ratio of SC ruling in B.C Srinivasa Setty squarely applicable, even when the ‘cost of improvement’ not ascertainable;  Mumbai ITAT rulings in Maheshwar Prakash CHSL and Jethalal Mehta relied upon : Mumbai ITAT

ACIT v. Shri Ishverlal Manmohandas Kanakia [TS-74-ITAT-2012(Mum)]