Income Tax - One of the most controversial provisions, which had a huge impact on the taxation of Real Estate Transactions, was the introduction of concept of Deeming Fiction through Section 50C....
Read MoreIncome Tax - Section 50C provides that if the value stated in the instrument of transfer is less than the valuation adopted, assessed or assessable by the stamp duty authorities, the valuation as adopted, assessed or assessable by the stamp duty authorities will be considered for the purpose of computation of capital gains arising on transfer of lan...
Read MoreIncome Tax - Sale of land resulting in business income The first and most important issue to be determined is whether the land is held as investment or stock in trade. If the agricultural land is held as stock in trade then the sale of such lands is taxable as business income and no exemption under the Act is provided in this regard....
Read MoreIncome Tax - Section 50C was introduced in the Income-tax Act, 1961 by the Finance Act, 2002 with effect from 1-4-2003 for substituting valuation done for Stamp Valuation purposes as full value of consideration in place of apparent consideration shown by the transferor of capital asset, being land or building and, accordingly, calculating capital gain...
Read MoreIncome Tax - The author discusses that recent amendment by Finance Act, 2018 to section 50C of allowing 5% deviation may be curative in nature and hence there is a case that the same may be treated as having a retrospective effect from the date on which section 50C came into force i.e. 1-4-2003. IT will reduce burden […]...
Read MoreIncome Tax - In relation to computing capital gains tax liability on transfer of land or building, amendment made via the Finance Act, 2016 gives an option for considering the stamp duty value as on date of agreement instead of stamp duty value on date of registration...
Read MoreIncome Tax - Rationalisation Of Section 50c To Provide Relief Where Sale Consideration Fixed Under Agreement To Sell- Section 50C makes a special provision for determining the full value of consideration in cases of transfer of immovable property. It provides that where the consideration declared to be received or accruing as a result of the transfer...
Read MoreBaniara Engs (P) Ltd. Vs ITO (ITAT Kolkata) - 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 [&helli...
Read MoreGirdhari Lal Vs ITO (ITAT Delhi) - Girdhari Lal Vs ITO (ITAT Delhi) The test for determining whether the impugned land is agriculture bear mainly on the nature or character of the land, and not merely on the actual user or non-user at a particular point of time. If the land is not actually appropriated for agricultural purposes, the ...
Read MoreITO Vs Raj Kumar Parashar (ITAT Jaipur) - Provision of section 50C(1) of the Act are not applicable to section 54F for the purpose of determining the meaning of full value of consideration....
Read MoreAmar Das Vs ITO (ITAT Kolkata) - Amar Das Vs ITO (ITAT Kolkata) Admittedly the provisions of section 50C are applicable only for capital assets and not for assets held as stock-in-trade. We find that the legislature in its wisdom had introduced a separate provision to adopt the stamp value in respect of assets other than capital as...
Read MoreShri Ashwani Jaipaty Vs The DCIT (ITAT Delhi) - A.O. applied the deeming provisions of Section 50C of the I.T. Act, for the purpose of making the addition. Thus, the A. O. did not bring any positive evidence on record to show that assessee has concealed particulars of income or furnished any inaccurate particulars....
Read MoreBaniara Engs (P) Ltd. Vs ITO (ITAT Kolkata) -
Girdhari Lal Vs ITO (ITAT Delhi) -
ITO Vs Raj Kumar Parashar (ITAT Jaipur) -
Amar Das Vs ITO (ITAT Kolkata) -
Shri Ashwani Jaipaty Vs The DCIT (ITAT Delhi) -
Baniara Engineers Pvt. Ltd Vs. ITO (ITAT Kolkata) -
Sudha Garg Vs ITO (ITAT Delhi) -