Case Law Details
Recently, the Mumbai bench of Income-tax Appellate Tribunal (the Tribunal) in the case of Arif Akhatar Husssain (ITA No. 541/Mum/2010) held that the provisions of Section 50C of the Income-tax Act, 1961 (the Act) is applicable to the capital gains arising on transfer of Development Rights by the taxpayer.
Background
Section 50C of the Act, provides that if the consideration received or accruing to a taxpayer on transferring of any land or building is less than the value adopted by any Stamp Valuation Authority for the purpose of payment of stamp duty in respect of such transfer, the value so adopted shall be considered as full value of consideration.
Facts of the case
• Brief facts of the case are that during the year under consideration, the taxpayers along with other co-owners transferred the development rights to a developer for development of a inherited property for the consideration of INR 63 lakhs. The tax payer offered the gains arising thereof based on share allocable in the sale consideration of INR 63 lakhs.
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