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2023 (1) TMI 1072 - AT - Income TaxCapital gain on lease hold properties - addition made u/s. 50C - whether the deeming provision of section 50C applies to leasehold rights in land or building? - HELD THAT:- Phraseology in section 50C(1) of the Act only covers exclusively land or building or both and does not refer to any right in land or building. Thus, the expression land or building in its coverage is quite distinct from the expression any right in land or building. The legislature, in its wisdom, for the purpose of section 50C without referring to section 2(14) of the Act, has used the expression land or building or both in section 50C(1) of the Act itself, and without the expression of any right in therein i.e. land or building. Therefore, the precise use of one expression would exclude the other, a legal premise which is supported by the judgment of Hon’ble Apex Court in the case of “GVK Industries Ltd. Vs ITO” [2011 (3) TMI 1 - SUPREME COURT] In our considered opinion, the point sought to be raised by the Ld. AR deserves to be upheld. Such a distinction also has found approval of “CIT Vs Greenfield Hotels & Estates Pvt. Ltd.” [2016 (12) TMI 353 - BOMBAY HIGH COURT] We find that the present transaction of transfer of leasehold right in question does not warrant invoking of section 50C(1) of the Act, as the property in question is not of the explicitly covered by section 50C(1) of the Act, for the reason, we set aside the order of the Ld. FAA and direct the Ld. AO to delete the impugned addition. Appeal of assessee allowed.
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