New Delhi, Oct. 13 -- A Bengaluru landowner who surrendered a part of his property for road development and widening later sold the Transferable Development Rights (TDRs) received in return for the surrender.

He disposed of the TDRs for Rs.6.02 crore and has now been instructed to pay capital gains tax. However, the capital gains tax he will pay will be offset by relief on the cost of the surrendered land, as per a report by The Times of India.

In an order dated 14 August 2026, the Income Tax Appellate Tribunal (ITAT), Bengaluru, heard the case based on the facts and rejected the landowner's argument that the proceeds were exempt from taxation as the TDRs had no ascertainable acquisition cost.

Still, it instructed the assessing officer...