2013 (10) TMI 147

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....de by the Assessing Officer on account of suppression of sale consideration of plots of land ?      (ii) Whether in the circumstances and the facts of the case and in law, the Appellate Tribunal was correct in holding that Section 50C is not applicable in the case of the assessee ignoring the fact that the land transferred was indeed a capital assets, which was chargeable to capital gain tax u/s. 45 (2) of the Income Tax Act, 1961 ?      (iii) Whether in the circumstances and the facts of the case and in law, the Appellate Tribunal was correct in holding that Section 50C is not applicable to determine the fair market value of the land, which was being treated by the assessee as stock in trade ? ....

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....ation. In Appeal before the CIT [A], the CIT [A] revered the decision of the Assessing Officer and held that Section 50C of the Act would have no applicability when question of capital gain did not arise. Reliance was placed on the decision of the Delhi High Court in case of CIT v. Smt. Nilofer I. Singh, reported in 309 ITR 233. Revenue thereupon approached the Tribunal. Tribunal confirmed the view of the CIT [A], making following observations :-      "Rival submissions were considered. Undoubtedly, the lands in question sold were in stock-in-trade. As a matter of fact, in the assessment order, A.O himself mentioned that assessee is a dealer in plots. Therefore, Section 50C of the I.T Act, 1961 has no applicatio....