Section 50C Inapplicable to Tenancy Transfers: ITAT Mumbai

ITO Vs Abdul Aziz Abdul Kadar (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT) Mumbai dismissed the Revenue’s appeal in ITO Vs Abdul Aziz Abdul Kadar, ruling that Section 50C of the Income Tax Act, 1961, does not apply to tenancy right transfers. The appeal, filed by the Revenue against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] for the assessment year 2007-08, questioned whether the Assessing Officer (AO) correctly applied Section 50C to the capital gains arising from the transfer of tenancy rights. The Revenue argued that the CIT(A) erred in relying on previous IT...