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Issues involved: Appeal against deletion of addition of long term capital gain u/s 50C of IT Act.
Summary: The appeal challenged the deletion of an addition of Rs. 2,94,39,000/- as long term capital gain u/s 50C of the IT Act. The Revenue argued that as per section 50C, the value adopted by the stamp valuation authority should be deemed as the full value of consideration in case of lower sale consideration. The assessee contended that as per section 53A of the Transfer of Property Act, the transfer of land is deemed to occur when the sale agreement is entered into, not just upon registration. The Tribunal noted that the assessee, a housing cooperative society, declared nil income but was assessed by the AO u/s 143(3) with additions. The CIT(A) deleted the addition, citing that the books were audited and transfer deeds were registered during the relevant year. The AO failed to prove actual receipt of the mentioned consideration from buyers. The Tribunal found that since the land was held as stock in trade, the profit should be taxed as business profit, not capital gains. Section 50C was deemed inapplicable to business profit, and the amendment in 2013 did not apply to the relevant assessment year of 2009-10. Therefore, the Tribunal upheld the CIT(A)'s order, dismissing the Revenue's appeal. This judgment was delivered on 17.7.2013 by SHRI JOGINDER SINGH, Judicial Member and SHRI R.C. SHARMA, Accountant Member.
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