SEC 50C NOT APPLICABLE ON LEASEHOLD LAND & BUILDING
One of the relevant ingredients for invoking S.50 C is that there is a payment of stamp duty in respect of transfer of capital assets being land or building or both.
Payment of stamp duty is required only when transfer of capital asset is registered under theRegistration Act. If payment of stamp duty for the purpose of the transfer is not required, then there is no occasion to look into other conditions as mentioned in S.50 C . Therefore, in those cases of transfer where agreement or sale deed is not registered and stamp duty is not paid, or capital gain is simply charged by deeming certain transactions as transfer as per other provisions of the act or some transactions of transfer are not registered or are not legally required to be registered under the Registration Act, S.50′C’ cannot be put into operation.
The above view has been adopted in following judgments :
- ACIT Vs. Shrikishan Dass, ITA No. 915/ Del/ 2012, Date of pronouncement: 07.06.2013, ITAT – Delhi Bench
- Carlton Hotels (P) Ltd. Vs ACIT, 35 SOT 26(lucknow) ,122 TTJ 515
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