2023 (1) TMI 1072

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.... Act by Asstt. Commissioner of Income Tax, Ahmednagar Circle, Ahmednagar [for short "AO"] for the assessment year [for short "AY"] 2014-15. 2. The solitary dispute to be adjudicated under the present appeal lies in a very narrow compass as to whether the deeming provision of section 50C applies to leasehold rights in land or building? 3. Before articulating the facts of the case, lets reproduce grounds assailed by the appellant are; "1. That the learned Commissioner of Income Tax (A) 2, Pune has erred on the facts & in the circumstance in confirming addition made u/s. 50C of Income Tax Act Rs.1,12,97,440/- by the Assessing Officer. That the addition made is unwarranted as the provisions of Section 50C are not applicable to le....

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....ection 50C in case of transfer of lease rights in the immovable property. 5. During the course of physical hearing the learned authorised representative for the assessee [for short "AR"] reiterated almost all the contention put forth before both the Ld. TAB and vehemently urged that, the provisions of section 50C are self-contained which calls for no addition thereto or subtraction therefrom, hence utterly land and building or both only falls within the realm of section 50C, thus it expunges all other assets from its terrain, however both the Ld. TAB erred in holding the transfer of leasehold property is a subject matter of section 50C and carried out the addition without appreciating the facts in sprit of correct law and brought to tax ....

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....be strictly interpreted, a proposition which is quite acceptable; and, according to the assessee, section 50C(1) covers a capital asset being land or building or both whereas in the instant case, what is transacted is merely leasehold rights in land and building, which is a distinct Capital Asset. The distinction sought to be made by the assessee is well-founded, and such distinction can be gauged from the Act itself. Ostensibly, in Section 54D(1) of the Act, the Capital Asset has been understood to be land or building or any right in land or building, thereby supporting the distinction sought to be canvassed before us. 8. On the contrary, the phraseology in section 50C(1) of the Act only covers exclusively land or building or both and d....