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TMI Blog2017 (10) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... the addition of Rs. 2,21,09,600/- holding that the provision of section 50C of the I.T. Act, 1961 cannot be invoked in this case when there was a transfer of immovable property in view of the provisions of section 2(47)(vi) of the Income Tax Act, 1961? 3. On the facts and circumstances of the case, the Ld. CIT(A) has erred in law in not considering the fact that the choice of the assessee in selecting a particular mode of transfer of such assets will not alter or determine the nature or character of the asset. 4. The appellant craves leave to ad, amend any/ all the grounds of appeal before or during the course of hearing of the appeal." 3. The brief facts of the case are that assessee filed his return of income on 30.9.2008 declaring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the amount of Rs. 2,18,00,000/- paid to Sh. Rakesh Kumar Garg and Sh. Santosh Kumar Garg were returned back. It was further observed that another "Share Purchase Agreement" dated 6.11.2008 was entered into between Sh. Rakesh Kumar Garg & Sh. Santosh Kumar Garg (Sellers) and Mrs. Deepti Arora & Sh. Ramesh Kumar (Purchasers) for transferring the entire Shareholding to purchasers for a consideration of Rs. 2,18,00,000/-. This time the deal matured and the capital gains (loss) on the transfer of shares have been declared by the assessee in A.Y. 2009-10. However, the sequence of above events clearly suggest that the purpose of transfer of entire share holding of M/s Raj Refullers and Fire Safety Equipment Private Limited to Mrs. Deepti Aror ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actually for transferring the land and shares were only means of controlling the ownership of the land. Accordingly the Income under the head Capital Gains is chargeable for transfer of land and not for transfer of shares as declared by the assessee. He further noted that it is also a well settled law that corporate veil can be lifted if it is used for avoiding the payment of due taxes. As per the AO, the present case is covered by Section 2(47)(vi) of the I.T. Act. 1961 as sale of the shares of the company has the effect of transferring or enabling the enjoyment of the immovable property. In view of above. it was held by the AO that the Capital gains shall be chargeable as if the land was transferred and not shares. As per provisions of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the hands of the assessee as long term capital gain, subjective to report of the District Valuation Officer and assessed the income of the assessee at Rs. 2,40,28,230/- vide order dated 30.12.2010 passed u/s. 143(3) of the I.T. Act, 1961. Against the aforesaid assessment order, assessee appealed before the Ld. CIT(A)-XXVI, New Delhi, who vide his impugned order dated 19.2.2013 has allowed the appeal of the assessee. Aggrieved with the order of the Ld. CIT(A), the Revenue is in appeal before the Tribunal. 4. Ld. DR relied upon the Order of the AO and reiterated the contentions raised in the grounds of appeal. 5. On the contrary, Ld. Counsel of the assessee relied upon the order of the Ld. CIT(A). 6. We have heard both the parties and pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istered with the registering authority by paying stamp duty. Section 50C could be invoked only if the sale consideration received is less than the value adopted by Stamp Valuation Authority of the State Government for the purpose of payment of stamp duty. However, there is no evidence that any stamp duty has been paid towards transfer of the plot of land as held by the AO and that the Stamp Valuation Authority adopted any particular value as sale consideration for payment of stamp duty in the present transaction. In fact, in this case there is a mere transfer of shares of a company and no stamp duty appears to be payable towards plot of land. In the assessment order also it is nowhere stated that any state government authority has adopted a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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