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| The Tax Publishers2023 TaxPub(DT) 724 (Pune-Trib) INCOME TAX ACT, 1961
Section 50C
Where there was only transfer of leasehold right in an immovable property by assessee; the same did not warrant invocation of section 50C(1) and hence, addition made by invoking the provisions of section 50C, was liable to be deleted.
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Capital gains - Invocation of section 50C - Applicability of provision - Transfer of leasehold right in an immovable property
Assessee claimed long-term capital loss on transfer of an immovable property. AO found out that transfer of the property was at a value lower than the value adopted for stamp duty valuation. Accordingly, he invoked provisions of section 50C and brought to tax the differential amount. On appeal, CIT(A) upheld the order of the AO. Aggrieved, the assessee was in appeal before Tribunal. Both the Revenue authorities erred in law in invoking the provisions of section 50C as there was only transfer of lease rights in the immovable property and not the immovable property. Held: Section 50C(1) only covers exclusively land or building or both and does not refer to any right in land or building. Thus, the expression land or building in its coverage is quite distinct from the expression 'any right in land or building'. The legislature, in its wisdom, for the purpose of section 50C without referring to section 2(14), has used the expression 'land or building or both' in section 50C(1) itself, and without the expression of any right in therein i.e., land or building. Therefore, the precise use of one expression would exclude the other. In instant case, there was only transfer of leasehold right in an immovable property by assessee, thus, the same did not warrant invocation of section 50C(1). Hence, addition made by AO invoking the provisions of section 50C, was deleted.
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2014-15
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