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2012 (12) TMI 781 - AT - Income TaxApplicability of sec 50 C on transfer of Leasehold Rights – Held that:- From the plain reading of the language of Section 50C (1), it is clear that value of land or building or both adopted or assessed or assessable by the Stamp Valuation Authority shall, for the purpose of Section 48, deemed to be full value of consideration accruing as a result of such a transfer. Section 50C(1) is of a deeming provision and it extends only to land or building or both. Such a deeming provision has been incorporated to substitute the value adopted by the Stamp Valuation Authority in place of consideration received or accruing as a result of transfer. The deeming provisions as contemplated in Section 50C however does not extend to lease rights in a land - Thus, respectfully following the decisions Atul G. Puranik Versus ITO [2011 (5) TMI 576 - ITAT, MUMBAI] & DCIT Vs. Tejinder Singh [2012 (3) TMI 47 - ITAT, KOLKATA] provision of Section 50C would not be applicable on the transfer of lease hold rights on the land. Thus going through the material placed on record like copy of agreement dated 5-11-1974 between MIDC and the assessee and the agreement dated 16-10-2006 between the appellant and Karamtara Engineering (P) Ltd. and also the valuation adopted by the Stamp valuation authority, it can be fairly concluded that it is a transfer of leasehold rights therefore, the finding given by the CIT(A) for non applicability of Sec 50C are confirmed - appeal filed by the department dismissed.
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