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TMI Blog2017 (1) TMI 731X X X X Extracts X X X X X X X X Extracts X X X X ..... nsideration was received by the assessee other than rent and maintenance charges. The detailed findings so recorded by CIT(A) are as per material on record, therefore, do not require any of our interference. Accordingly, grounds taken by the Revenue are dismissed. - ITA No. 5674/Mum/2014, CO No. 42/Mum/2016 - - - Dated:- 9-1-2017 - Shri R. C. Sharma, AM And Shri Ravish Sood, JM Revenue by : Shri A. Ramachandran Assessee by : Shri Vijay Mehta ORDER Per R. C. Sharma ( A. M ) This is an appeal filed by the Revenue and Cross Objection filed by the assessee against the order of CIT(A) for the assessment year 2011-12, in the matter of order passed u/s.143(3) of the IT Act. 2. Rival contentions have been heard and record perused. 3. Facts in brief are that assessee is in the business of letting out of property. During the year under consideration, assessee let out one of its properties on rent for a monthly consideration of ₹ 3080/- and monthly maintenance charges of ₹ 1765/- to Shri Lalit Kumar Jain. However, AO applied provisions of Section 50C by taking the stamp duty value adopted for registration of tenancy deed as full value of consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the tenant only. In fact, by way of abundant caution, the land lord has also kept with himself the right of redevelopment of the property and the tenant would give irrevocable consent for the same as mentioned in clause no. 25 of the tenancy agreement. On the perusal of the entire tenancy agreement it is seen that the tenant has been given very limited right of occupation of the property for his commercial purposes, other than that he has not been given any kind of right, title or interest in the ownership of the said property. Tenancy rights accrue to a tenant by the fact that he has been occupying a particular property for a considerable length of time. It is to be noted that tenants who have occupied a property for a number of years develop tenancy rights in the said property by virtue of the fact of occupation and also by the fact of having paid the rent for a number of years to the landlord. This right therefore is given to them by law to safeguard them from any kind of unlawful and unjust eviction by the landlord. In this case, the new tenant has merely occupied the property from 01 January 2011. On perusal of the paper book, it is seen that the appellant has submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Atul G Puranik (2011-(132) ITD 0499 TBOM) where in it has been held as follows: In view of the aforesaid judgments rendered by the Hon'ble Apex Court and that of the Hon'ble Jurisdictional High Court, it is clear that a deeming provisions can be applied only in respect of the situation specifically given and hence cannot go beyond the explicit mandate of the section. Turning to Section 50C, it Is seen that the deeming fiction of substituting adopted or assessed value by the stamp valuation authority as full value consideration is applicable only in respect of land or building or both. If the capital asset under transfer cannot be described as land or building , then section 5OC will cease to apply. On a similar issue regarding applicability of Section 50C in cases of transfer of tenancy rights the Hon ble Mumbai Tribunal in the case of Munsons Textiles ITA No.6320/M/2010 have held that as under: There is no dispute that the transfer of tenancy rights is a capita! asset and income is assessable as capital gain. The dispute is only about sale value. Appellant had shown value of ₹ 55 lacs in respect of transfer of tenancy rights relating to about ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mp duty value is not permissible, since section 5OC is not applicable. In view of the facts discussed above and respectfully following the decision of the Hon'ble Mumbai Tribunal in the cases of Atul G Puranik and Munsons Textile, this ground of appeal is hereby allowed. 5. Against the above order of CIT(A), Revenue is in further appeal before us. 6. We have considered rival contentions and carefully gone through the orders of the authorities below. We had also deliberated on the judicial pronouncements referred by lower authorities in their respective orders as well as cited by learned AR and DR during the course of hearing before us in the context of factual matrix of the case. From the record we found that during the year assessee has let out one of its properties vide agreement dated 22/10/2010 to Shri Lalit Kumar Jain. The AO applied provisions of Section 50C by taking the stamp duty value adopted for registration of tenancy deed as full value of consideration and an addition of ₹ 82,31,000/- was made on account of capital gains. The CIT(A) recorded a categorical finding to the effect that landlord at all the times held exclusive use and possession of the imp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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