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2016 (7) TMI 275

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..... ot go beyond the explicit mandate of the section. Clearly, therefore, it is essential for application of Section 50C that the transfer must be of a capital asset, being land or building or both. If the capital asset under transfer cannot be described as ‘land or building or both’, then Section 50C will cease to apply. From the facts of the case, it is seen that the assessee has transferred only rights in the impugned land which cannot be equated to land or building or both. Therefore, in our understanding of the fact qua the provisions of Section 50C, the action of the revenue authorities is erroneous. We, therefore, set aside the findings of the ld. CIT(A) and direct the A.O to delete the addition as deemed income u/s. 50C of the Act - .....

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..... khat on 22.11.1993 (supra). This sale deed was registered. 4. The A.O was of the firm belief that it is the assessee who has sold the property and, therefore, taking a leaf out of the provisions of Section 50C of the Act, The A.O adopted the stamp duty value of the registered sale deed as the full value of consideration and re-computed the capital gains. 5. Assessee carried the matter before the ld. CIT(A) but without any success. Before us, the ld. counsel for the assessee vehemently stated that what has been transferred is a right and, therefore, provisions of Section 50C of the Act are not at all applicable. It is the say of the ld. counsel that even in the impugned transaction the seller is Shri Prafulchandra P. Patel (HUF) and th .....

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..... asset under transfer cannot be described as land or building or both , then Section 50C will cease to apply. 8. From the facts of the case as mentioned elsewhere, it is seen that the assessee has transferred only rights in the impugned land which cannot be equated to land or building or both. Therefore, in our understanding of the fact qua the provisions of Section 50C, the action of the revenue authorities is erroneous. We, therefore, set aside the findings of the ld. CIT(A) and direct the A.O to delete the addition of ₹ 7,66,666/- ad deemed income u/s. 50C of the Act. In the result, the appeal filed by the assessee is allowed. 9. Before parting, it was brought to the notice that the CBDT has issued Circular No. 549, dated 31 .....

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