Case Law Details
Brief of the Case
ITAT Hyderabad held in the case of Gulf Oil Corporation Ltd. vs. ACIT that section 50C will get attracted only when there exists difference on the sale consideration and assessed value for the purpose of stamp duty by the authority of a state government. Where there is no material evidence that the assessee had received more than the fixed component from the developer, the value agreed to be exchanged for transfer of land was determined on the basis of development agreement, it becomes the final sale consideration unless contrary is produced by the revenue. In the present case, revenue has not brought any evidence to show that the assessee had received more than the agreed value as in the developmental agreement. So, the same has to be adopted as sale consideration. Since there is no evidence for receipt of higher consideration and it is bonafide transaction, section 50C has no jurisdiction over this transaction.
Facts of the Case
The Assessee is a company engaged in the business of manufacturing of Lubricant Oil. The Assessee filed its return of income for the AY 2005-06 on 30.10.2006, admitting loss from Business Rs.274,03,615/- and Long term capital gain on sale of Land at Rs. 16,56,29,605/-. The book profit under section 115JB was declared at Rs. 17,77,38,422/-. The case was selected for scrutiny and AO completed the assessment u/s 143(3), determined the total income at Rs. 48,96,74,233/-.
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