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| The Tax Publishers2020 TaxPub(DT) 5252 (Bang-Trib) : (2021) 187 ITD 0149 INCOME TAX ACT, 1961
Section 50C
Scope of section 50C is restricted by legislature itself to these two types of capital assets only being land or building or both and, therefore, invocation of section 50C as regards development rights in land was wrong.
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Capital gains - Applicability of section 50C - Transferred 'Development Rights in the land' -
Assessee transferred 'Development Rights in the land'. AO invoked section 50C and made addition. Held: A perusal of section 50C shows that section 50C would be applicable where consideration received as a result of transfer of a capital asset, being land or building or both, is less than the value adopted or assessed or assessable by any authority of State Government. Thus, scope of section 50C is restricted by legislature itself to these two types of capital assets only. Accordinlgy, invocation of section 50C as regards development rights in land was wrong and, therefore, addition was not sustainable.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2014-15
IN THE ITAT, BANGALORE BENCH
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