TaxTMI 
TaxTMI 
2015 (4) TMI 588
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....ng in the case and as per provisions of the law it be held that, the AO has erred in taxing the amount of Rs. 4,89,89,000/- as long term capital gains on transfer of leasehold rights in respect of MIDC land by applying provisions of section 50C as against long term capital gain of Rs. 1,90,11,120/- declared and admitted by the appellant under this head. The action of the AO be held as erroneous, unjustified and contrary to the provisions of law and facts prevailing in the case. It further be held that the decision of the 1st appellate authority confirming the decision of the AO on this issue is contrary to the provisions of law and facts prevailing in the case. The appellant be granted just and proper relief as per provisions of law & facts prevailing in the case. 3. On facts and circumstances prevailing in the case and as per provisions of the law it be held that, the AO has erred in not allowing the claim of Rs. 11,56,667/- being loss on sale / transfer of "dies belonging to others" on which no depreciation was claimed by the appellant. The action of the AO be held as erroneous and unjustified & decision of the 1st appellate authority be held as contrary to the provisions of l....
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.... Officer show-caused the assessee on the strength of the provisions of section 50C of the Act as to why the full value of consideration for transfer of land be not taken at Rs. 4,98,93,000/- instead of Rs. 2,35,04,000/- taken by the assessee. 5. Second 50C of the Act contains special provisions for ascertaining the full value of consideration for the purposes of computing capital gains on transfer of a capital asset, being land or building or both. It provides that if the consideration received or accruing is less than the value adopted or assessed or assessable by the stamp valuation authority of the State Government for such transfer, the value so adopted or assessable shall be deemed to be the full value of consideration and the capital gains will be computed accordingly. On the strength of 50C of the Act, the Assessing Officer inferred that the value of Rs. 4,98,93,000/- adopted by the stamp valuation authority for the transfer of land be taken as the full value of consideration and the capital gain computed accordingly instead of the consideration of Rs. 2,35,04,000/- adopted by the assessee. The assessee resisted the aforesaid action of the Assessing Officer by pointing ou....
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....ch. In support of his proposition, the Ld. Representative has relied upon the following decisions of the Tribunal :- (i) M/s Heatex Products Pvt. Ltd. vs. ACIT, ITA No.8197/Mum/2010 dated 24.07.2013; (ii) Smt. Kishori Sharad Gaitonde vs. ITO, ITA No.1561/Mum/2009 dated 27.11.2009; (iii) ITO vs. M/s Pradeep Steel Re-Rolling Mills Pvt. Ltd., ITA No.341/Mum/2010 dated 15.07.2011; (iv) ITO vs. Shri Yasin Moosa Godil, ITA No.2519/Ahd/2009 dated 13.04.2012; and, (v) M/s Jaipur Times Industries vs. ITO, ITA No.429/JP/2012 dated 26.02.2014. 8. On the other hand, the Ld. Departmental Representative appearing for the Revenue has pointed out that the Explanation below section 269UA(d) of the Act clearly provides that immovable property would included within its meaning even land and any rights therein. It has also been pointed out that the said meaning of expression "immovable property" has also been referred to in section 2(47) of the Act which defines 'transfer' in relation to a capital asset. It was therefore contended that section 50C of the Act, which is a special provision for computing capital gain in certain cases would include not only land as such but also leasehol....
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..... The CIT(A) has corelated this to section 2(47) of the Act which defines the expression 'transfer' in relation to capital asset. As per the CIT(A), section 2(47) of the Act contains a reference to the meaning of the 'immovable property' contained in section 269UA(d) of the Act and therefore transfer in relation to a capital asset defined in section 2(47) of the Act would include within its purview transfer of a capital asset, being leasehold rights in land also. Upto this stage, there can be no quarrel with the stand of the CIT(A). The incongruity starts when the CIT(A) further goes to say that because of the aforesaid provisions, it was "not necessary to mention 'rights in land or building' specifically u/s 50C of the Act also". 11. In our considered opinion, the point made by the CIT(A) is quite fallacious. Firstly, it has to be understood that the meaning of the expression "immovable property" contained in section 269UA(d) of the Act has been referred to in section 2(47) of the Act only in relation to sub-clause (v) and (vi) thereof. Secondly, from the meaning of expression "immovable property" contained in section 269UA(d) of the Act, the only thing that can be inferred is ....
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.... Rs. 10,15,149/- which has been disallowed by the lower authorities. 15. In this context, the relevant facts are that in the return of income assessee claimed a loss on sale of Dies/moulds manufactured on behalf of the customers amounting to Rs. 10,15,149/-. The claim of the assessee was that no depreciation was claimed on such value of Dies/moulds and therefore the loss on its sale was allowable as a long term capital loss. The Assessing Officer did not accept the plea of the assessee on the ground that the same was already considered as a part of block assets. The CIT(A) also affirmed the stand of the Assessing Officer. The CIT(A) further noticed that if the Dies have been manufacture on behalf of the customers, it was not understood as to how the same is being claimed as a 'capital' asset on which long term capital loss was claimed. Against such a stand of the lower authorities, assessee is in further appeal before us. 16. Before us, the Ld. Representative for the assessee has referred to the Annual financial statements of the assessee for the period under consideration and pointed out that Dies/moulds manufactured on behalf of the customers is appearing as a separate asse....