TMI Blog2018 (11) TMI 1904X X X X Extracts X X X X X X X X Extracts X X X X ..... pose of payment of stamp duty in respect of such transfer. It is settled legal position that deeming provision can be applied only in respect of the situation specifically given and hence cannot go beyond the explicit mandate of this section. Therefore, it is essential for application of section 50C that transfer may not be of a capital asset being land or building or both. The assessee has transferred is lease holding rights in land and building. The ld.Counsel further relied in the case of Atul Puranik Vs ITO [ 2011 (5) TMI 576 - ITAT, MUMBAI ] wherein it was held that section 50C applies only to a capital asset being land or building or both it cannot be made applicable to lease holding rights in a land as the assessee transferred l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .3,68,289/-U/S 50-C OF THE ACT (i) The Learned CIT (A) has erred in law and on facts in confirming the addition made by the assessing officer of Rs.3,68,289/ -u/s 50-C of the Act on transfer of right in leasehold property by not appreciating the law that the section 50-C applies only for transfer of land, building or both not for transfer of leasehold rights . (ii) The Learned CIT (A) has erred in not appreciating the judgment of the Jurisdictional Tribunal in the case of ITO v. Shri Yassin Moosa Godil (ITA No 2519/Ahd/2009 dtd. 13-04- 2012) as quoted by the appellant during the appellate proceedings. 3. Succinct facts are that the AO has made addition of Rs.3,68,289/- on transfer of right in leasehold property u/s.50C of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase hold rights. The ld.Counsel relied in the case of CIT vs. Mother India Refrigeration Industries Pvt. Ltd. [1985] 155 ITR 711 (SC) and submitted that the provision of section 50C are applicable on transfer of land or building or both but it is not applicable in case of transfer of any tenancy or lease hold rights in the property. Section 50C is a deeming provision by a virtue of which a legal fiction has been created. It is a settled law that legal fiction cannot be extended beyond the purpose for which it is enacted. Legal fiction is only for a definite purpose and limited to the purpose for which they are created and should not be extended beyond the legitimate field. The ld.Counsel further placed reliance in the case of CIT vs. Green ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erusal of section 50C manifest that it applies only to the land or building or both. Section 50C can come into play only in a situation where the consideration received or accrue as a result of transfer by a 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 duty in respect of such transfer. It is settled legal position that deeming provision can be applied only in respect of the situation specifically given and hence cannot go beyond the explicit mandate of this section. Therefore, it is essential for application of section 50C that transfer may not be of a capital asset being land or building or both. The assessee has transferred is lease ..... X X X X Extracts X X X X X X X X Extracts X X X X
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