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2013 (4) TMI 340 - AT - Income TaxTransaction of transfer of tenancy rights - whether the impugned transfer of tenancy rights attracts the provisions of section 50C - whether u/s 2(47)(v) the giving of possession in part performance of a contract as per section 53A of the Transfer of Property Act is deemed to be a transfer - Held that:- The Tribunal's decision in the case of Shri Atul G. Puranik vs. ITO (2011 (5) TMI 576 - ITAT, MUMBAI) which of course deals with the case of 'transfer of lease rights' in principle shall apply to the impugned transfer of 'tenancy right', which is neither land nor building nor both. Like the 'lease rights', the 'tenancy rights' are also the capital rights attached to the 'land or building or both' and however, they are not covered by the definition of 'land or building or both' specified in the provisions of section 50C, which is marked as deemed provisions. The deemed provisions are not to be extended to items of capital assets which are not mentioned in section 50C and it is the settled legal position. Therefore, considering the above settled nature of the issue the provisions of section 50C which is the deeming fiction of substituting the value adopted or assessed or assessable by the stamp valuation authority only in respect of land or building or both cannot be extended or extrapolated to the transaction of transfer of the tenancy rights. Accordingly, grounds raised by the Revenue are dismissed and decided in favour of the assessee.
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