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2021 (2) TMI 587 - HC - Income TaxLoss arising from sale of subject land - Capital gain OR profit and gains from business or profession - Section 50C applicability - assessee had entered into an unregistered agreement i.e., an agreement to sale with M/s Namaste Exports Ltd. for purchase of land measuring 3639.60 square meters for a consideration of ₹ 4.25 Crores - HELD THAT:- Section 50C applies only in case of a transferor of land which in the instant case is M/s Namaste Exports and not the assessee who was only a consenting party and not a transferor / co-owner of the property. Undoubtedly, the assessee had certain rights under the agreement, however, from the clear plain and unambiguous language employed in Section 50C, it is evident that the same does not apply to a case of rights in land. It is equally well settled rule of statutory interpretation with regard to taxing statute that an assessee cannot be taxed without clear words for that purpose and every Act of the Parliament has to be read as per its natural construction of words. For the aforementioned reasons, in our considered opinion, the provisions of Section 50(c) are not applicable to the case of the assessee. In the result, the first substantial question of law is answered in the negative and in favour of the assessee.
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