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2014 (1) TMI 1230 - AT - Income TaxApplicability of section 50C of the Act – Addition made in sale consideration – Nature of payment made - Assessee is a shareholder in company along with other shareholders and sold his shares for a consideration – Held that:- The decision in Irfan Abdul Kader Fazlani Versus Assistant Commissioner of Income-tax, Central Circle-44, Mumbai [2013 (2) TMI 350 - ITAT MUMBAI] followed - The assessee transferred the shares in the company and not the land or building or both - Assessee does not have full ownership on the flats which are owned by the company - The transfer of shares was never a part of the assessment of the Stamp duty Authorities of the State Government - The company was deriving income, taxable under the head ‘income from property’ for more than a decade – thus, the AO’s decision to invoke the provisions of section 50C to the tax planning adopted by the assessee is not proper and it does not have the sanction of the provisions of IT Act - The provisions of section 50C are deemed provisions which are required to be strictly interpreted - The addition made by the AO and confirmed by the Ld. CIT(A) on account of Long Term Capital Gain by enhancing the value of sale consideration set aside – Decided in favour of Assessee.
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