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TMI Blog2013 (7) TMI 948X X X X Extracts X X X X X X X X Extracts X X X X ..... (2011 (5) TMI 576 - ITAT, Mumbai ). Disallowance of exemption claimed by the assessee u/s. 54EC - Held that:- The claim has been denied because the assessee has invested in the REC Bonds beyond the period of limitation prescribed under the said section. It is the say of the Ld. Counsel that such Bonds were not available during the period of limitation, therefore, the assessee could not have purchased the Bonds within the specified period. Therefore, we restore this issue also back to the files of the AO. The AO is directed to verify whether REC bonds were available during the period of limitation and if the Bonds were not available, then the assessee cannot be penalized for doing something impossible to perform because REC Bonds are Gov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perty of Thane, the market value is shown at ₹ 1,87,33,000/- as per the receipt of registration authorities. The AO sought explanation from the assessee requiring it to show cause as to why the provisions of Sec. 50C should not be made applicable in its case. The assessee filed a detailed reply vide letter dt. 23.11.2009. However, the reply was silent relating to the applicability of Sec. 50C of the Act. The assessee was once again given an opportunity to explain the issue of applicability of provisions of Sec. 50C of the Act and proof of investment u/s. 54EC of the Act. In response to which, the assessee filed valuation report dt. 19.4.2007 valuing the fair market value of the property as on 1.4.1981. Once again the reply of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver taken before any of the lower authorities; therefore, if the plea of the assessee is accepted by the Tribunal at this stage, the Revenue authorities should be given an opportunity to examine the issue afresh. 7. We have considered the rival submissions and perused the orders of the lower authorities and the material evidence placed on our record in the form of Paper Book. A perusal of the Valuation report filed by the assessee before the AO particularly at page-60 of the Paper Book show that the valuer has mentioned that the property is leasehold and the lease period is 99 years. It has also been mentioned by the valuer that he has perused the lease document made on 20.2.1969 between MIDC as the lesser and Shri Gaurishankar K. Ghuwal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1963) 48 IT 59 (SC) has considered the scope of a deeming provision and came to hold that it cannot be extended beyond the object for which it is enacted. Similar view has been reiterated by the Hon ble Supreme Court in CIT vs. Mother India Refrigeration Industries P. Ltd. (1985) 155 ITR 711 (SC) by laying down that legal fictions are created only for some definite purpose and these must be limited to that purpose and should not be extended beyond their legitimate field . In CIT vs. Ace Builders P. Ltd. (2006) 281 ITR 210 (Bom), the Hon ble jurisdictional High Court considered the facts of 17 ITA No.3051/M/10 Atul G. Puranik a case in which the assessee was a partner in a firm which was dissolved in the year 1984 and the assessee was all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jurisdictional High Court, it is clear that a deeming provision can be applied only in respect of the situation specifically given and hence cannot go beyond the explicit mandate of the section. Turning to sec. 50C, it is seen that the deeming fiction of substituting adopted or assessed or assessable value by the stamp valuation authority as full value of consideration is 18 ITA No.3051/M/10 Atul G. Puranik applicable only in respect of land or building or both. If the capital asset under transfer cannot be described as `land or building or both , then sec. 50C will cease to apply. From the facts of this case narrated above, it is seen that the assessee was allotted lease right in the Plot for a period of sixty years, which right was furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd `or any rights in land or building on the other. Considering the fact that we are dealing with special provision for full value of consideration in certain cases u/s.50C, which is a deeming provision, the fiction created in this section cannot be extended to any asset other than those specifically provided therein. As sec. 50C applies only to a 19 ITA No.3051/M/10 Atul G. Puranik capital asst, being land or building or both, it cannot be made applicable to lease rights in a land. As the assessee transferred lease right for sixty years in the Plot and not land itself, the provisions of sec.50C cannot be invoked. We, therefore, hold that the full value of consideration in the instant case be taken as ₹ 2.50 crores. 9. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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