Loading ITAT cases…
2 orders · Page 1 of 1
The Tribunal held that Section 50C is applicable only to capital assets and not to stock-in-trade. Based on the evidence, including development agreements, power of attorney, and consistent accounting treatment, the Tribunal found that the land was part of the assessee's stock-in-trade. The addition made by the AO was based on an incorrect identification of the property and led to double taxation.
The Tribunal held that Section 43CA of the Income Tax Act, 1961, applies only to the transfer of tangible immovable property, specifically 'land or building or both'. TDRs are considered intangible development rights and do not fall within the ambit of this section. Therefore, the addition made by the AO based on the market value of TDRs was not sustainable.