2015 (10) TMI 2859 - HC - Income Tax

Applicability of provisions of Section 50C in case of transfer of tenancy rights - Tribunal decided that AO has wrongly substituted the value adopted or assessable stamp valuation authority only in respect of land or building or both cannot be extended or extrapolated to the transaction of transfer of the tenancy rights under the provisions of Section 50C - HELD THAT - We find that the impugned order of the Tribunal dismissed the Revenue's appeal inter alia holding that the provisions of Section 50C of the Act would not be attracted in case of transfer of tenancy rights. The impugned order placed reliance upon its own decision in Shri. Atul G. Puranik 2011 (5) TMI 576 - ITAT, MUMBAI as held that transfer of tenancy rights is neither 'a land or building or both' and thus would not be covered under Section 50C of the Act. Mr. Malhotra, learned Counsel for the Revenue very fairly states that the Revenue has accepted the decision in the case of Shri. Atul G. Puranik (supra) inasmuch as no appeal has been preferred against the said order. No substantial question of law

Summary

The Bombay High Court dismissed the appeal challenging the Income Tax Appellate Tribunal's order for the Assessment Year 2007-08. The Tribunal held that Section 50C of the Income Tax Act does not apply to the transfer of tenancy rights, citing a previous decision. The appeal was dismissed as it did not raise any substantial question of law.