When can provisions of section 50C of the IT Act not be invoked for calculating LTCG?

Last updated: 07 September 2021

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Quick Summary

This judgement clarifies that Section 50C of the Income Tax Act, which deals with the notional sale value of property for capital gains, does not apply when an assessee transfers leasehold rights in a property. The tribunal ruled that Section 50C is specifically for the transfer of land or buildings, not for the transfer of rights associated with them. Additionally, the appeal addressed the disallowance of interest paid to partners where the original partnership deed did not permit such payments.

Court :
ITAT Mumbai

Brief :
Aforesaid appeal by assessee for Assessment Year (AY) 2010-11 arises out of the order of learned Commissioner of Income-Tax (Appeals)-58, Mumbai [CIT(A)], order dated 30/07/2019 in the matter of assessment framed by Ld. Assessing Officer (AO) u/s 143(3) on 05/02/2013.

Citation :
I.T.A. No.5644/Mum/2019

Daily Limit Reached