KANUBHAI PURSHOTTAM MERCHANT,MUMBAI vs. INCOME TAX OFFICER,WARD 19(2)(2),MUMBAI, MUMBAI

ITA 1817/MUM/2026Status: DisposedITAT Mumbai15 July 2026AY 2018-201913 pages
AI SummaryRemanded

What were the facts?

The assessee registered a tenancy agreement for a property, stating it was not a transfer of ownership but a lease. The Assessing Officer (AO) and CIT(A) treated it as a transfer of ownership, invoking Section 50C and taxing the stamp duty value as capital gains.

What did the Tribunal hold?

The Tribunal held that the CIT(A) erred in confirming the AO's order. It found that the transaction was a transfer of tenancy rights, not ownership, and thus Section 50C was not applicable. The matter was remanded for fresh adjudication.

What were the issues?

Whether a registered tenancy agreement, without a duration clause, constitutes a transfer of ownership attracting Section 50C, or a transfer of tenancy rights where Section 50C is inapplicable.

Which sections of the Income-tax Act were involved?

Section 50C,Section 2(47)(vi),Section 269UA(d),Section 45

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES, MUMBAI

Before: HON’BLESMT. BEENA PILLAIAND HON’BLE SHRI JAGADISH

Pronounced: 15.07.2026

PER: BEENA PILLAI, JUDICIAL MEMBER: The present appeal filed by the assessee arises out of order dated 23.12.2025 passed by the NFAC, Delhi for Assessment Year 2018-19 on following grounds of appeal:

Ground No.1 1) The Learned CIT(A) erred in confirming the order of the Assessing Officer without considering the facts of the case that the Appellant had not transferred

The order continues below.

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