TaxTMI 
TaxTMI 
2026 (6) TMI 1315
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....ts in land & building. 3. That the appellant was not allowed sought opportunity of hearing through video conference. 4. That appellant craves leave to add any other ground before the honourable bench." 3. Brief facts emerging from records are that the original return filed by the assessee u/s. 139(1) on 15^th September, 2012, disclosing returned income at Rs. 19.52 lakhs ( plus LTCG on sale of land Rs. 34.15 lakhs ) , was selected under CASS for scrutiny on issues relating to interest expenses connected to exempted income (u/s. 14A) and on account of capital gains disclosed in ITR being less than sale of property reported in AIR, and after necessary verification and examination of documentary evidences and submissions filed by the assessee the assessment was eventually completed with additions u/s. 36(1)(iii) on account of disallowing interest claim, additions u/s. 37(i) disallowing indirect expenses and separate addition on account of machinery scrap. 3.1 Thereafter, on the basis of information received by the AO of the assessee ( Circle - II, Bhatinda ) from the ITO - ward 1(1) Bikaner dated 25^th July, 2017, that the stamp duty value of the asset sold by ....
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.... 2 . As per provision of section 50C, where the consideration received or accruing as a result of transfer by assessee of a capital asset is less than the value adopted or assessed or assessable by stamp valuation authority for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed or assessable shall be deemed to be the full value of consideration received or accruing as a result of such transfer. In view of this, deemed full value of consideration in this case u/s. 45(1) of the Act read with section 48 of the Act works out to Rs. 3,80,33/461/-. The contention of the assessee that the land in question was leasehold land and hence provisions of section 50C were not applicable to it is not acceptable. The ITAT, Lucknow Bench in the case of ITO vs Hari Om Gupta, ITA No. 222/LKW/2013 has held that leasehold right of land is a capital asset and provisions of section 50C are applicable on transfer of such leasehold land. 3. In view of the above facts, I have reasons to believe that an amount of Rs. 1,85,33,461/- which was chargeable to tax in the case of the assessee for the assessment year 2012-13 has escaped assessment within th....
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.... land and on the difference amount of such consideration and booked of acquisition book Capital Gain Taxes. Therefore, section 50C is clearly applicable in the present case. The judgments quoted by the assessee are mostly applicable in the cases where there is transfer of only lease hold land. In the present case, the assessee had taken the plots on lease in 1991, constructed building on the plots, installed machinery and business was started. Subsequently the business was closed and building and land was given on rent and rent was received in the previous years.. Further the assessee sold the land with building-by-entering-into-sale-with M/s Vision Star Agro Foods (P) Ltd. and got it registered with Stamp Valuation Authority of the state. It is also seen from the purchase deed that M/s Nasa Agro Industries (P) ltd. had acquired leasehold rights in the plots vide deed dated 23.02.1991 and it also clearly says that the assessee had full rights to use, sale and transfer the said land (plots). However, on perusal of the sale deed dated 19.03.2012 between M/s Nasa Agro Industries (P) Ltd. and M/s Vision Star Agro Foods (P) ltd., it is very much clear that the assessee had sold....
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....visions of 50C. The AO has rightly placed his reliance on Hon'ble Mumbai ITAT Judgment in the case of Shavo Norgen (P) Ltd. vs. DCIT, Mumbai. The addition made by AO is hereby confirmed and appeal by the appellant is dismissed regarding invoked of 50C. The appellant has also objected against the reopening of assessment u/s. 147. But I do not see any reason to find the reopening bad. Proper reasons and proper approvals have been taken. Thus the ground of appeal is also not sustainable and hence rejected." 7. Now the assessee is before the tribunal on the grounds contained in the memo of appeal and has filed additional grounds on 24^th July, 2025, which are reproduced: "1. That the reassessment proceedings u/s. 147 were initiated after the expiry of 4 years without pointing out the failure on part of the assessee to disclose necessary facts are barred by limitation. Since the above ground is purely a legal ground and all the facts are available on record the same may kindly be admitted as additional ground." 8. In course of hearing before the tribunal, the ld AR of the assessee has filed paper book containing audited financials, copies of sale deed of land....
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....a person. That cannot be in any manner equated with land or building, but rather, would be a species of the right to hold it, which as indicated above, are of multiple nature. 7. We, therefore, find that merely because the land was originally allotted by the MIDC by way of a lease to the predecessor of the appellant, who in turn has received the same by way of an assignment, that being one of the modes of transfer, of land or building, the mere use of a particular mode of transfer, cannot create any exception vis-a-vis the holding of the land or building by the Assessee. The word 'transfer' as used in Section 50C(1) of the IT Act, also cannot be used in a restricted sense and will have to be given widest amplitude, considering the nature and purpose of the section KHUNTE 4-ITL34.22.odt and thus would include all modes and methods of transfer as are permissible and recognizable in law. 8. Atul Puranik (supra) relied upon by the learned counsel for the appellant does not consider the effect and import of Section 2(14)(a) in conjunction with the language used in section 50C of the IT Act, and merely goes on to hold, that since the land is held in a leasehold ....
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....e AO has completed the assessment accepting the sale value disclosed by the assessee in the return filed . 11.1 He further submitted that the case is being reopened after four years from the end of the relevant assessment year and there is no failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment for that assessment year and as such the reopening in the instant case is legally not valid as per the first proviso to section 147, because the same would tantamount to change of opinion based on materials already on record, and in support of his contention he relied on a plethora of judicial pronouncement on the issue. 12. Per contra the Ld. DR objected to the additional grounds now taken by the assessee before the tribunal for the first time challenging the reopening u/s. 147, and submitted that this issue was never agitated neither before the AO nor before the Ld. first appellate authority and was not even a part of the grounds of appeal contained in the memorandum of appeal in form 36, and in absence of the same the Ld. first appellate authority never had the opportunity to adjudicate on the issue. 12.1 The Ld. DR furth....
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....ials placed before us and the paper book on record and we are of the opinion that the assessment records needs to be examined, to ascertain the completeness of the disclosure, especially on the face of such contradictory claims by both parties, and also considering the fact that this legal issue, challenging the proceedings u/s. 147, has not been adjudicated by the Ld. first appellate authority in absence of any grounds being taken before him, in the interest of justice we remand the matter back to the Ld. first appellate authority for adjudication on this additional ground after consulting assessment records, (or obtaining report from AO) , as per provisions of law and the assessee is also directed to fully cooperate in appellate proceedings by filing all necessary submission. 14. The assessee will be allowed reasonable opportunity of being heard and notice to be issued in email id in portal and email of the counsel and opportunity of video hearing (as claimed by the assessee) may also be allowed. 15. As such this additional ground taken by the assessee is allowed for statistical purpose. 16. In the result the appeal of the assessee is partly allowed for statistical purpo....
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....¥à¤–णà¥à¤¡ संखà¥à¤¯à¤¾ ई-39 ई-40 ई-41 à¤à¤µà¤‚ ई-42 मिळवाल इणà¥à¤¡à¤¸à¥à¤Ÿà¥à¤°à¤¿à¤¯à¤² à¤à¤°à¤¿à¤¯à¤¾ बीकानेर ने वितà¥à¤¤ वरà¥à¤· 2011-12 के दौरान रà¥à¤ªà¤¯à¥‡ 1.95,00,000/- में विकरा किया गया है, जिसकी मालियत उप पंचडियक बीकानेर दà¥à¤µà¤¾à¤°à¤¾ सं.3,60,33,461/- गाया गया है, चूंकि उका निरà¥à¤§à¤¾à¤°à¤¿à¤¤à¥€ कमà¥à¤ªà¤¨à¥€ में नासा à¤à¤—à¥à¤°à¥‹ इणà¥à¤¡à¤¸à¥à¤Ÿà¥à¤°à¥€à....
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....¥¤ आयकर अधिकारी, वारà¥à¤¡ 1(1), शà¥à¤°à¥€à¤µà¤£à¤—ेर Off ce of the Dy. Commissioner of Income Tax .A Circle II, Sathinda R.K. 0 3 MAY 2017 Receipt NEL 1021 Document 2 - INCOME TAX DEPARTMENT OFFICE OF THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-II, AAYAKAR BHAWAN, CIVIL LINES, BATHINDA - 151001 To M/s Nasz Agro Industries Private Limited Village paincha wall. Fazilka. (AAACN70501) 2m 15/17 Dear Sir. Sub: - Sale of capital asset during the financial year 2011-12 -Regarding - As per information available with this office, you transferred a capital asset comprising of industriel Plot Nos. E-39 to E-42,at Bikaner on 19.01.2012;for epparent consideration of Rs 1 95 crore. However, the Stamp Valuation Authority Le. Sub Registrar, Bilener adopted/assessed value of such capital asset at ks. 3.80.33,461/ for the purpose of payment of stamp duty in respect of such transfer. As such, full value of consideration for the purpose of section 48 of the Act was deemed to be ks, 1.80.33,461/- as provided u/s 50 C of the Act. 2 You a....