Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (5) TMI 354 - HC - Income TaxTransfer of a capital asset - Applicability of section 50C - transfer of lease rights (in the case of lease for 99 years, relating to agricultural land) - Held that:- There is no merit in the appellant/assessee’s contentions that the occupancy rights are not in the nature of capital assets, the transfer of which do not attract capital gains, as to exclude application of Section 50C. The rights (towards occupancy) are nearly permanent, having regard to the nature of holding. The issue of transfer of lease rights (in the case of lease for 99 years, relating to agricultural land) was considered in R.K. Palshikar (HUF) v. Commissioner of Income Tax [1988 (5) TMI 3 - SUPREME Court] as held the lease is for a long period, namely, 99 years, hence it would appear held that under the leases in question the assessee has parted with an asset of an enduring nature, namely, the rights to possession and enjoyment to the properties leased for a period of 99 years subject to certain conditions on which the respective leases could be terminated. A premium has been charged by the assessee in all the leases. We fail to see how it could be said that the provisions of Section 12-B of the said Act cannot be brought into play. The grant of the leases in question, in our view, amounts to a transfer of capital assets as contemplated under Section 12-B of the said Act. Also see A.R. Krishnamoorthy v. Commissioner of Income Tax, (1989 (2) TMI 2 - SUPREME Court) confirming decision in Palshikar (supra) - Decided against assessee
|