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TMI Blog2024 (6) TMI 881X X X X Extracts X X X X X X X X Extracts X X X X ..... s; the reopening of the assessment under section 147 of the Income Tax Act, 1961 (In short, the 'Act') and quantum addition made by the Assessing Officer (In Short, the 'AO'). 3. The relevant facts giving rise to this appeal are that the assessee, a salaried employee, filed his Income Tax Return (In short, the 'ITR') of the relevant assessment year 2011-12 on 17.02.2012 declaring income of Rs. 5,06,850/- which was processed under section 143(1) of the Act. Later on; the AO, based on the AIR information that the assessee who sold a leasehold property for Rs. 60,00,000/- did not offer the capital gains derived thereon for tax in the relevant year, reopened the case. Since the appellant/ assessee did not file any proof of cost of acquisition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18) Shri Kadir Ahmed (ITA No. 418/Del/2020) and Damyanti Mundhra (ITA No. 1722/Del/2019), submitted that the Section 50C of the Act, being a deeming provision, was not applicable in case of transfer of leasehold rights. The Ld. Counsel drew out attention to the provisions of section 50C of the Act, wherein it has been specifically mentioned that this Section is applicable to those capital assets only which are land or building or both. 6. The Ld. Senior Departmental Representative (In short, the 'Sr. DR'), placing emphasis on the finding of the AO and the CIT(A), prayed for dismissal of the appeal. However, on specific query, he admitted that there is no judicial pronouncement holding that the provisions of Section 50C of the Act is applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-section (2), where the capital gain arises from the transfer by way of compulsory acquisition under any law of a capital asset, being land or building or any right in land or building, forming part of an industrial undertaking.....". Thus, it is palpable from section 54D of the Act that 'land or building' is distinct from 'any right in land or building'. 9. The Hon'ble Supreme Court in the case of Amarchand N. Shroff 48 ITR 59 has held that a deeming provision cannot be extended beyond the purpose for which it is enacted. Similar view was reiterated by the Hon'ble Supreme Court in the case of Mother India Refrigeration Industries (P.) Ltd. 155 ITR 711 by laying down that "legal fictions are created only for som ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and building. 12. The relevant portion of Section 50C of the Act reads as under: "50C.(1) Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed [or assessable] by any authority of a State Government (hereafter in this section referred to as the "stamp valuation authority") for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed [or assessable] shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer." 13. On-going through the above provisions of section 50C of the Act, it transpire ..... X X X X Extracts X X X X X X X X Extracts X X X X
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