NUTRELA MARKETING P. LTD,MUMBAI vs. ITO 7(1)(1), MUMBAI

ITA 3910/MUM/2010Status: DisposedITAT Mumbai30 September 2025AY 2006-07Bench: SMT. BEENA PILLAI (Judicial Member), SHRI OMKARESHWAR CHIDARA ( (Accountant Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that Section 50C is applicable only to land or building or both, and not to leasehold rights. However, it followed a subsequent Bombay High Court decision which applied Section 50C to leasehold rights, dismissing the assessee's grounds.

What were the facts?

The assessee claimed bad debts and sold leasehold rights in land and a factory building. The Assessing Officer invoked Section 50C, treating the stamp duty valuation as the sale consideration for capital gains. The CIT(A) upheld the addition but restricted it to the stamp duty value.

What were the issues?

Whether Section 50C of the Income Tax Act is applicable to the transfer of leasehold rights in land and building, and whether the Tribunal should follow a High Court decision that contradicts its own interpretation.

Which sections of the Income-tax Act were involved?

Section 50C,Section 48,Section 2(14),Section 54D

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Income Tax Appellate Tribunal, “B” BENCH, MUMBAI

Before: SMT. BEENA PILLAI & SHRI OMKARESHWAR CHIDARA

For Appellant: Shri Rajiv Khandelwal
For Respondent: Shri Leyaqat Ali Aafaqui, SR. A.R
Hearing: 06.08.2025Pronounced: 30.09.2025

Per: Smt. Beena Pillai, J.M.: The present appeal filed by the assessee arises out of order dated 01/02/2019 passed under miscellaneous petition no. 483/Mum/2018. 2. It is submitted that, this Tribunal vide dated 10/01/2018 dismissed the appeal for non appearance. However, on going

2 ITA No.3910/Mum/2010; A.Y. 2006-07 Nutrela Marketing Pvt Ltd through the affidavit filed by the assessee, in miscellaneous petition, the order dated 10/01/2018 was recalled and posted to decide the appeal on merits after hearing appeal on both sides.

Accordingly the present appeal is been placed before this Tribunal

The order continues below.

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