2020 (12) TMI 114

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....the Act by the ITO, Ward-40(5), Delhi was dismissed. 2. The assessee has raised the following grounds of appeal:- "1. That on the facts and circumstances of the case, the order datedaslS,12.2016 passed by the Income-tax Officer, Ward 40(5), New Delhi [hereinafter referred to as "the Ld. A.O."] under section 14313) of the Income-tax Act, 1961 [hereinafter referred to as "the Act"] and as upheld by the Ld. Commissioner of Income-tax (Appeals) - 14, New Delhi [hereinafter referred to as "the CIT(A)"] is bad at law and mid ab initio. 2. That on the facts and in the circumstances of the case and in law, the CIT(A) erred in upholding the Applicability of section SOC of the Act cm transfer of lease hold land. 3. That, without prejudice to....

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....hs. The circle rate of plot as per stamp duty rate was Rs. 42,10,000/-. However, the assessee opted for showing the capital gain on the same by adopting the sale consideration as per sale deed of Rs. 20 lakhs and supported it by a market value certification from registered valuer. The assessee declared the resultant capital gain as short term capital gain of Rs. 554880/-. 5. The ld AO noted that provisions of section 50C applies and therefore, show cause notice was issued on 02.12.2018. The assessee submitted which is reply on 05.12.2018 stating that market value of the above property is very low as compared to circle rate. The assessee supported it by the valuation certificate. 6. The ld AO rejected the contention of the assessee and sub....

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....According to the assessee leasehold rights are neither land or building or both. For this proposition the assessee relied upon the decision of the coordinate bench in case of Noida Cyber Park Pvt. Ltd ITA No. 165/Del/2020 dated 12.10.2020. However, on careful perusal of the fact it is apparent that the issue is squarely covered in favour of the assessee by the decision of the Hon'ble Bombay High Court in 389 ITR 68 CIT Vs. Greenfield Hotels and Estates Pvt. Ltd wherein, the Hon'ble High Court has upheld the order of the coordinate bench holding that provisions of section 50C will not be applicable while computing the capital gain on transfer of leasehold rights in land and plot. The issue is also covered in favour of the assessee by the dec....