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| The Tax Publishers2020 TaxPub(DT) 0395 (Kol-Trib) : (2020) 182 ITD 0227 : (2020) 204 TTJ 0383 INCOME TAX ACT, 1961
Section 50C
Special provision for full value of consideration in certain cases under section 50C which is a deeming provision, fiction created in this section cannot be extended to any asset other than those specifically provided therein. As section 50C applies only to a capital asset, being land or building or both, it cannot be made applicable to lease rights in a land. As assessee has transferred leasehold right for 99 years in shop and not land itself, provisions of section 50C could be invoked.
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Capital gains - Full value of consideration - Applicability of section 50C in case of transfer of leasehold rights in shop -
Question arose for adjudication was as to whether consideration which assessee received for transfer of leasehold rights in shop could attract section 50C for computation of capital gains as done by AO.Held: Special provision for full value of consideration in certain cases under section 50C which is a deeming provision, fiction created in this section cannot be extended to any asset other than those specifically provided therein. As section 50C applies only to a capital asset, being land or building or both, it cannot be made applicable to lease rights in a land. As assessee has transferred leasehold right for 99 years in shop and not land itself, provisions of section 50C could be invoked.
REFERRED : CIT v. Amarchand N. Shroff (1963) 48 ITR 59 (SC) : 1963 TaxPub(DT) 351 (SC), CIT v. Mother India Refrigeration Industries (P.) Ltd. (1985) 155 ITR 711 (SC) : 1985 TaxPub(DT) 1335 (SC) and G.V.K. Industries Ltd. v. ITO (2011) 4 SCC 36 (SC).
FAVOUR : In assessee's favour.
A.Y. : 2016-17
IN THE ITAT, KOLKATA BENCH
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