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2016 (7) TMI 275 - ITAT AHMEDABAD

2016 (7) TMI 275 - ITAT AHMEDABAD - TMI - Deemed income u/s. 50C - Held that:- From the reading of Section 50C, it is evident that Section 50C is a deeming provision and it extends only to land or building or both. Section 50C can come into play only in a situation where the consideration received or accruing as a result of the transfer by an appellant of a capital asset, being land or building or both is less than the value adopted or assessed or assessable for the purpose of payment of stamp d .....

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m 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 - Decided in favour of assessee. - ITA. No: 2220/AHD/2012 - Dated:- 6-5-2016 - .....

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50C of the I.T. Act. 1.1 The C.I.T.(Appeals) failed to appreciate that sec.50C of the Act does not apply in the case of the assessee. 3. Briefly stated the facts of the case are that the assessee entered into Banakhat for land at Village Vadaj having area of 489 square meters at the rate of 605 per square meter on 24.09.1993. This Banakhat was registered without possession of the land on 27.10.1993. On 22.11.1993, assessee entered into another Banakhat of the aforementioned land with Shri Vimal .....

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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 .....

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e transaction took place between Shri Prafulchandra P. Patel and Shri Vimal R. Ambani/ Indravadan Barot. It is also an undisputed fact that for the impugned land, assessee had entered into a Banakhat on 24.09.1993 with Shri Prafulchandra Patel sold the land, assessee had only relinquished his right in property. 7. From the reading of Section 50C, it is evident that Section 50C is a deeming provision and it extends only to land or building or both. Section 50C can come into play only in a situati .....

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