9911796707
TMI Blog2022 (6) TMI 1483X X X X Extracts X X X X X X X X Extracts X X X X ..... nce that the CIT(A) has erred in law and on facts in reversing the assessment findings making section 50C addition of Rs. 3,07,94,790/- in issue, we find that the lower appellate authority has discussed this issue to this effect as under: "5. Ground No. 1 & 2: These grounds relates to adoption of stamp duty valuation u/s 50C for the purpose of computing the capital gains. 5.1. The appellant submitted that it had purchased lease hold rights from MIDC vide agreement dtd. 13/1/1984 for an area of 12069.25 sq.mtrs in plot no. 117 'S' block of Pimpri Industrial area by paying a lease premium of Rs. 6,03,500/- and with annual lease rent of Rs. 18,703/-. Out of this leased area, the appellant had sold the lease rights in respect of San ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uilding portion at Rs. 25,79,720/- and the fencing and the compound wall was Rs. 76,119/-. However, this report was revised by way of the letter dtd. 3/7/2013 by the Techno Economic Consultant and in this revised valuation, value of the land adopted at Rs. 9,310/- per sq.mtr on the ground that the proposed increase of 10 from January 2013 by MIDC was not approved by the Board. The valuer accordingly valued the land at 2,14,78,170/- and there was no change in respect of the valuation of other structures. Thus, the valuation of the property changed from Rs. 2,77,41,738/- to Rs. 2,55,93,921/-. However, the appellant had adopted the consideration of land to be Rs. 2.8 crores and the building at Rs. 10 lakhs. It is seen that the AO has not alter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or accruing is less than the value adopted or assessed or assessable by the stamp valuation authority of the State Government for such transfer then the value so adopted or assessed or assessable shall be deemed to be the full value of consideration and the capital gains will be computed accordingly. The phraseology of sec. 50C of the Act clearly provides that it would apply only to 'a capital asset, being land or building or both'. The moot question before us is as to whether such expression would cover the transfer of a capital asset being leasehold rights in Sand or building. There cannot be a dispute to the proposition that the expression land by itself cannot include within its fold leasehold rights in land also. Of course, lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... succeeds". 5.3.1. The jurisdictional ITAT has held the issue in favour of the assessee and there are no distinguishing features in the present case to differ from the same. Therefore, following the decision of Pune ITAT, the addition made is deleted." 3. Suffice to say, we find no merit in the Revenue's argument in principle that section 50C gets attracted even in case of transfer of leasehold rights which does not come within the nature and ambit of specified asset(s) of "land or building or both" in the statutory provision. We thus, conclude that the learned CIT(A) has rightly adopted stricter construction whilst accepting the assessee's arguments. We also deem it proper to quote hon'ble apex court's recent landmark decision in Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
