2015 (10) TMI 1889

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....rder for the sake of convenience. 2. The grievance of the Revenue reads as under: "On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in holding that assessee was nowhere owner of the land/building but has merely transferred the tenancy rights without appreciating the fact that rights in land of building have applicability of Sec. 50C as held in Mumbai ITAT's judgement dated 24.12.2010 in the case of Arif Akhatar Hussain wherein it was held that u/s. 2(47)(v) giving of possession in part performance of a contract as per Sec. 53A of the transfer of property act is deemed to be transfer." 3. The grievances of the assessee read as under: "1. On the facts and in the circumstances of the case and in la....

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....accepted by the AO who was of the firm belief that provisions of Sec. 50C are clearly applicable and therefore the Stamp duty value should have been taken by the assessee as full value of consideration. The AO recomputed Long Term Capital Gain on surrender of tenancy right and made the impugned addition. 5. The assessee carried the matter before the Ld. CIT(A) and once again claimed that provisions of Sec. 50C are not applicable on surrender of tenancy right. Reliance was placed on the decision of the Tribunal in the case of ACIT Vs M/s. Munsons Textiles in ITA No. 6320/M/2010. The Ld. CIT(A) was convinced that the assessee has merely transferred tenancy right therefore provisions of Sec. 50C are not applicable and the action of the AO i....

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....ansfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed 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 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. (2) Without prejudice to the provisions of sub-section (1), where- (a) the assessee claims before any Assessing Officer that the value adopted or assessed or assessed or assessable by the stamp valuation authority un....

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....sub-section (2), where the value ascertained under sub-section (2) exceeds the value adopted or assessed by the stamp valuation authority referred to in sub-section (1), the value so adopted or assessed by such authority shall be taken as the full value of the consideration received or accruing as a result of the transfer. 11. Undisputedly tenancy right is a capital asset but whether transfer of such capital asset has to be looked upon in the light of the provisions of Sec. 50C of the Act. A perusal of Sec. 50C suggests that it is only for the limited purpose of computing capital gain in respect of sale of land and building, only when such sale take place Stamp duty value has to be substituted for the sale consideration, if the sale cons....