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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 MoreJagdish C. Dhabalia Vs ITO (Bombay High Court) - While giving full effect to the deeming fiction contained under section 50C of the Act for the purpose of computation of the capital gain under section 48, for which section 50C is specifically enacted, the automatic fallout thereof would be that the computation of the assessee’s capital gain and ...
Read MoreShri Vinod Kumar Chugh Vs ITO (ITAT Delhi) - Shri Vinod Kumar Chugh Vs ITO (ITAT Delhi) Conclusion: Section 50C could be invoked only when sale had taken place during the year. As the sale of vacant plot by assessee stood completed in the year 1991, there was no question of invoking the provision of section 50C for taxing the long term capital...
Read MoreDCIT Vs Shri Hrishikesh D. Pai (ITAT Mumbai) - DCIT Vs Shri Hrishikesh D. Pai (ITAT Mumbai) Conclusion: Assessee was entitled for deduction u/s. 54F on the capital gains arising on the sale of depreciable assets being commercial flats computed in the manner laid down in Section 50 read with Section 48, 49 and 45 and section 50 was a deemed p...
Read MoreSir Mohd. Yusuf Trust Vs ACIT (ITAT Mumbai) - Where property held by assessee was encumbered and, thus, she was not absolute owner of property, while computing capital gain arising from transfer of such a property, market value of property as taken for purpose of payment of stamp duty could not be adopted as sale consideration by applying provi...
Read MorePCIT Vs Executor of Estate of Late Smt. Manjula A. Shah (Bombay High Court) - PCIT Vs Executor of Estate of Late Smt. Manjula A. Shah (Bombay High Court) From the record, it can thus be seen that there were two significant factors why the CIT(A) and the Tribunal did not adopt the valuation of the stamp authority for the purpose of collecting capital gain tax in the h...
Read MoreJagdish C. Dhabalia Vs ITO (Bombay High Court) -
Shri Vinod Kumar Chugh Vs ITO (ITAT Delhi) -
DCIT Vs Shri Hrishikesh D. Pai (ITAT Mumbai) -
Sir Mohd. Yusuf Trust Vs ACIT (ITAT Mumbai) -
PCIT Vs Executor of Estate of Late Smt. Manjula A. Shah (Bombay High Court) -
Ms. Balmer Lawrie Van Leer Ltd. Vs ACIT (ITAT Mumbai) -
Baniara Engs (P) Ltd. Vs ITO (ITAT Kolkata) -
Girdhari Lal Vs ITO (ITAT Delhi) -
ITO Vs Raj Kumar Parashar (ITAT Jaipur) -
