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2020 (12) TMI 114 - AT - Income TaxShort tern capital gain - leasehold right transferred by the assessee as per registered agreement to sale to one Smt. Deepika Kapoor - applicability of provisions of section 50C - According to the assessee leasehold rights are neither land or building or both - HELD THAT:- On careful perusal of the fact it is apparent that the issue is squarely covered in favour of the assessee by the decision of the Hon’ble Bombay High Court CIT Vs. Greenfield Hotels and Estates Pvt. Ltd [2016 (12) TMI 353 - BOMBAY HIGH COURT] wherein held that provisions of section 50C will not be applicable while computing the capital gain on transfer of leasehold rights in land and plot. The issue is also covered in favour of the assessee by the decision of the coordinate bench in case of Ritz Suppliers Pvt. Ltd [2020 (1) TMI 726 - ITAT KOLKATA], Pyaribai K Jain [2019 (2) TMI 1055 - ITAT MUMBAI] and Kencast Pvt. Ltd [2015 (4) TMI 588 - ITAT PUNE]. In view of the above binding precedents we allow ground No. 2 of the appeal which challenges that provision of section 50C of the Act do not apply on transfer of leasehold right in plot of land and direct the ld AO to delete the addition - Decided in favour of assessee.
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