2012 (2) TMI 520

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....essee during the year had transferred tenancy right of the factory godown measuring 1800 sqft. for a sum of Rs. 55.00 lacs. The AO noted that the deed of assignment was not registered for the purpose of stamp duty as required under section 55 of the Maharashtra Rent Control Act. The AO therefore held that the sale consideration shown could not be accepted as the unregistered document was not valid evidence. He, therefore, concluded that market value had to be substituted for sale consideration shown in the document. The AO further observed that the property was situated in a prime locality in South Bombay and the sale consideration was understated. The AO also held that the transfer of tenancy right was akin to transfer of building and, the....

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....and argued that provisions of section 50C were not applicable in case of tenancy rights. He placed reliance on the decision of Mumbai Bench of the Tribunal in case of Atul G. Puranik vs. ITO (132 ITD 499)(Bom). It was also argued that in case document was not registered and no stamp duty was paid, provisions of section 50C could not be applied even in case of transfer of land/building. Reliance was placed on the Lucknow Bench of the Tribunal in the case of Carlton Hotel (P.) Ltd. (122 TTJ 515) and the decision of the Jaipur Bench of the Tribunal in the case of Smt. Vijay Laxmi Dhaddha Vs. ITO (20 DTR (Jp.)(Trib.) 365). It was accordingly urged that the order of CIT(A) should be upheld. 4. We have perused the records and considered the riva....