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June 2024

Section 50C ­— Leasehold rights in land are not within the purview of section 50C.

By Jagdish T Punjabi, Chartered Accountant
Devendra Jain & Aditya Bhatt, Advocates
Reading Time 3 mins

16 DCIT vs. A. R. Sulphonates (P.) Ltd.

(2024) 161 taxmann.com 451 (KolTrib)

ITA No.:570(Kol) of 2022

A.Y.: 2017–18

Dated: 22nd March, 2024

Section 50C ­— Leasehold rights in land are not within the purview of section 50C.

FACTS

The assessee was allotted leasehold land by Maharashtra Industrial Development Corporation (MIDC) on 11th April, 2008 for setting up a manufacturing unit.

Subsequently, the assessee decided to transfer the said land to one partnership firm, M/s S. M. Industries (SMI) vide an agreement to sale executed on 28th April, 2011, whereby the assessee agreed to transfer the said leasehold land for a consideration of ₹2 crores (stamp value on such date was ₹1,62,99,500). Against this agreement to sale, assessee received an adv

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