2026 (7) TMI 1222

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....Act") which is emanating from the assessment order dated 30.04.2021 passed u/s. 143(3) r.w.s. 144B of the Act by the ITO, for the Assessment Year (AY) 2018-19. 2. On hearing both the sides, we find that the controversy involved in the appeal of the assessee is the addition made by Ld. Assessing Officer ('in short AO') invoking provisions of Section 269 UA(F) of the Act by considering the lease granted by the assessee to a partnership firm M/s Kisan Sampada Food Path Industries Ltd. of the agricultural land which the assessee has claimed was owned by assessee as the co-owner along with son Shri Piyush Sachani. Ld. CIT(A) has sustained the same by relying on various judicial decisions and considering the transaction to be a nature of s....

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....Officer had made relevant discussions. 7. Then as we appreciate the impugned order of Ld. CIT(A), we find that Ld. CIT(A) observes in para 9.1 that the impugned transaction does not fall in the scope of transfer of capital asset under Section 2(47)(v) of the Act and instead Ld. CIT(A) invoked provisions of Section 2(47)(vi) of the Act and concluded that as lease was for over a long period of 50 years, it should be considered to be a transfer of property for the purpose of Section 2(47)(vi) of the Act. Thereafter, in para 11.1 had observed that provisions of Section 53A of the Transfer of Property Act have been duly applied by the Assessing Officer. To support this in para 11.3, reliance has been placed on the decision of this Tribunal in....

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.... transaction is one which falls in the scope of Section 2(47)(vi) of the Act. 12. Rather for such transactions referred to in Section 53A of the Transfer of Property Act, 1882. The Act provides for deemed transfer under sub-clause (v) to 2(47) of the Act which Ld. CIT(A) has himself found to be not applicable in para 9.1 of impugned order. If the intention was to consider the contract of lease to be an arrangement under Section 2(47)(vi) of the Act, then the valuation of the lease deed in terms of Article 36 of the Maharashtra Stamp Act, 1958 establish that it was merely a transfer of possession underlease hold rights, in lieu of lease rent. We are of considered view that only because the lease of the immovable property is for a long per....