TaxTMI 
TaxTMI 
2018 (5) TMI 1792
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....f. It is a case where a land was sold by the assessee-appellant under a registered sale deed on consideration. The Assessing Authority made addition of Rs. 41,80,805/- under the head of capital gain. The aforesaid was questioned by the assessee in reference to Section 50C of the Income Tax Act, 1961 (in short "the Act of 1961"). It was submitted that Section 50C of the Act of 1961 was not applicable to the facts of this case. It was not a transfer of capital asset but the rights. It was for the reason that land in question was under acquisition for RIICO. The land was sold by the khatedar to a Co-operative Society. A writ petition for regularisation of land was filed by the Co-operative Society. It was allowed by this court. The Apex Cou....
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....he assessing authority by invoking Section 50C of the Act of 1961, has not been interfered. The CIT (Appeals) held addition to be justified. The appeal filed by the assessee before the Tribunal was thus dismissed. The appellant has raised manifold issues for our consideration and, out of it, first is about nature of transfer of land. It is submitted that possession of land was lying with the RIICO thus right in the property was transferred and not the capital asset, thereby, Section 50C of the Act of 1961 would not be applicable. For ready reference, aforesaid provision is quoted hereunder: "50C. Special provision for full value of consideration in certain cases. (1) Where the consideration received or accruing as a res....
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....he date of transfer; (b) the value so adopted or assessed [or assessable] by the stmap valuation authority under sub-section (1) has not been disputed in any appeal or revision or no reference has been made before any other authority, court or the High Court, the Assessing Officer may refer the valuation of the capital asset to a Valuation Officer and where any such reference is made, the provisions of sub-section (2), (3), (4), (5) and (6) of section 16A, clause (i) of sub-section (1) and sub-sections (6) and (7) of section 23A, sub-section (5) of section 24, section 34AA, section 35 and section 37 of the Wealth-tax Act, 1957 (27 of 1957), shall, with necessary modifications, apply in relation to such reference as they apply in re....
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....rty lies with the assessee, whereas, according to the assessee, it lies with the RIICO. The material available on record does not show possession of RIICO as copy of award for acquisition of land and the "fard" possession are not on record. The documents show issuance of Notification under Sections 4 and 6 of the Land Acquisition Act, 1894 and not the award. The judgment of the Apex Court was also on challenge to the Notification under Sections 4 and 6 of the Act of 1894. Section 50C of the Act of 1961 has been invoked for the reasons explained by the Tribunal inasmuch as sale deed was made on consideration of Rs. 11,70,000/-, whereas, value of the property taken by the Sub-Registrar IV, Jaipur for registration of sale deed was at Rs. 53....
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....thout examining what is the difference between sale of the land and relinquishment of right in the property, case was decided. In view of the above, order passed by the ITAT, Ahmedabad cannot be accepted. It failed to appreciate even legal provisions in reference to relinquishment of right vis a vis sale of the property. The another order has been passed by the ITAT, Jaipur Bench, Jaipur. In the aforesaid case, the Tribunal drawn its conclusion in Paras 6.9 and 6.11. Both the paras are quoted hereunder for ready reference: "6.9 Section 50C is a deeming provision and it is only applicable in respect of capital assets which are land of building or both. It is thus clear that this deeming provision of section 50C will come into pla....
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..... It is also as to how it is not transfer of capital asset. If it is reflected as capital asset, transfer thereupon for consideration would attract Section 50C of the Act of 1961 but the aforesaid aspect has not been considered by the ITAT Tribunal, Jaipur Bench, Jaipur. It is nothing but an order without elaborate finding on the issue, that too, after taking into consideration the requisite facts for its adjudication. The appellant has referred judgment of Bombay High Court where it was held that Section 50C of the Act of 1961 would not be applicable on transfer of lease hold rights of the land. Bare perusal of Section 50C of the Act of 1961 does not show that transfer of capital asset for consideration should be other than of lease ....