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Case Law Details

Case Name : Baniara Engs (P) Ltd. Vs ITO (ITAT Kolkata)
Appeal Number : ITA No. 635/Kol/2018
Date of Judgement/Order : 04/07/2018
Related Assessment Year : 2013-14
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Baniara Engs (P) Ltd. Vs ITO (ITAT Kolkata)

From the reading of Sec. 50C, it is evident that Sec. 50C is a deeming provision and it extends to only to land or building or both. Section 50C can come into play only in a situation where the consideration received or accruing as a result of the transfer by an appellant of a capital asset, being land or both is less than the value adopted or assessed or assessable by any authority of State Government therefore for the purpose of payment of stamp duty in respect of such transfer. It is settled legal proposition that deeming provision can be applied only in respect of the situation specifically given and hence cannot go beyond the explicit mandate of the section. Clearly therefore, it is essential that for application of Sec. 50C that the transfer must be of a capital asset, being land or building or both. If the capital asset under transfer cannot be described as “land or building or both” then section 50C will cease to apply. From the facts of the case narrated above, it is seen that the assessee has transferred booking rights and received back the booking advance. Booking advance cannot be equated with the capital asset and therefore section 50C cannot be invoked.

FULL TEXT OF THE ITAT JUDGMENT

This is an appeal filed by the assessee directed against the order of Commissioner of Income-tax (Appeals)-1, Kolkata passed u/s 258 of the Income Tax Act, 1962 in short (‘the Act’) dated 28.02.2018.

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