2012 (5) TMI 829

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....d in law and be quashed. (2) For that in the facts and circumstances of the case the provisions of section 50C of the IT Act, 1961 does not apply hence the enhancement of the sale proceeds by ₹ 27,40,000/- be deleted. (3) For that in the facts and circumstances of the case the valuation made by the DVO is not as per law and hence the value assessed by the DVO be reduced and consequentially the capital gains also be reduced. (4) The appellant craves leave to press new, additional grounds of appeal or modify, withdraw any of the above grounds at the time of hearing of the appeal. 2. The issue in appeal lies in a very narrow compass of material facts. The assessee had transferred leasehold rights in a property at 119, Park Str....

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.... right of owner is divided between lessor and lessee". We are unable to share this line of reasoning. It is not necessary that consideration paid by the buyer of a property, at the time of buying the property, must only relate to ownership rights. In the case of tenanted property, as is the case before us, while the buyer of property pays the owner of property for ownership rights, he may also have to pay, when he wants to have possession of the property and to remove the fetters of tenancy rights on the property so purchased, the tenants towards their surrendering the tenancy rights. Merely because he pays the tenants, for their surrendering the tenancy rights, at the time of purchase of property, will not alter the character of recei....

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....ments with owner and which were, therefore, in the nature of lessee's rights; these rights could not have been, by any stretch of logic, could be treated as ownership rights. It has been specifically stated in the sale deed that the lessee, which included this assessee before us, had proceeded to, inter alia, "grant, convey, transfer and assign their leasehold rights, title and interest in the said premises". There is nothing on the record to even remotely suggest that the assessee was owner of the property in question. The monies received by the assessee, under the said agreement, were thus clearly in the nature of receipts for transfer of tenancy rights, and, accordingly, as the learned CIT(A) rightly holds, Section 50C coul....