CIT Vs Abdul Aziz Abdul Kadar (Bombay High Court)
The Bombay High Court dismissed the Revenue’s appeal in CIT Vs Abdul Aziz Abdul Kadar, ruling that the provisions of Section 50C of the Income Tax Act, 1961, do not apply to the transfer of tenancy rights. The appeal was filed under Section 260A of the Act, challenging the Income Tax Appellate Tribunal’s (ITAT) order dated February 15, 2013, for the Assessment Year 2007-08. The key issue was whether the Assessing Officer was correct in substituting the stamp duty valuation for tenancy rights under Section 50C, which is generally applicable to transfers of land or buildings.
The ITAT relied on its earlier ruling in Shri Atul G. Puranik Vs. ITO, which held that tenancy rights do not constitute “land or building or both” and are therefore outside the scope of Section 50C. The Revenue acknowledged that it had accepted this decision and had not appealed against it. Given this, the High Court concluded that the case did not raise any substantial legal question and dismissed the appeal without imposing costs. This ruling reaffirms that Section 50C applies strictly to immovable property involving land and buildings, excluding tenancy right transfers.
Read ITAT Order: Section 50C Inapplicable to Tenancy Transfers: ITAT Mumbai
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
