Case Law Details
Laxmi Ice & Cold Storage Vs ITO (ITAT Lucknow)
Section 50C speaks about transfer of land or building or both and the adoption of deemed valuation being valuation of stamp purposes as the full value of consideration. It does not speak of plant and this contention was put on record vide reply of the assessee dated 23/11/2015, which is placed at pages 120 to 122 of the paper book as well as by reply dated 23/12/2015, which is placed at pages 123 to 125 of the paper book whereby it has been put on record that it was a depreciable business assets duly disclosed in the return of income. The cold storage was sold as a whole and constituted plant under section 43(3) of the Act. The term “plant” has been interpreted as including cold storage building also and this line of reasoning is established by the Hon’ble jurisdictional High Court in the case of CIT vs. Kanodia Cold Storage (supra). We are, therefore, of the considered view that provisions of section 50C of the Act is not applicable to the cold storage building so to substitute actual sale consideration by deemed sale consideration and the order of the Assessing Officer passed under section 147/143(3) of the Act cannot be a subject matter of section 263.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
This appeal is preferred by the assessee against the order passed under section 263 of the Act by the Principal Commissioner of Income-tax-1, Kanpur dated 29/1/2016.
2. The assessee has challenged the assumption of jurisdiction by the Principal Commissioner of Income-tax-1, Kanpur under section 263 of the Act.
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