Section 50C of the Income Tax Act

Income-tax Act, 2025: s.78

Section 50C of the Income-tax Act, 1961 corresponds to section 78 (Special provision for full value of consideration in certain cases) of the Income-tax Act, 2025.

Read section 78 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 50C is CIT v. Alom Extrusions Ltd. (319 ITR 306), cited in 1,344 of the 3,223 judgments on BharatTax that turn on this section.

Leading authorities on Section 50C

CIT v. Alom Extrusions Ltd.
319 ITR 306 · 2009 · Supreme Court
1,344
citing judgments

A proviso inserted into a section to remedy unintended consequences, make the section workable, or supply an obvious omission must be read retrospectively in operation to give effect to the section as a whole.

CIT v. Chettinad Logistics (P) Ltd.
80 Taxmann.com 221 · 2017 · High Court
444
citing judgments

Section 14A cannot be invoked to disallow expenditure if the assessee has not earned any exempt income in the relevant assessment year. The Explanation to Section 14A is prospective in nature.

Allied Motors (P) Ltd. v. CIT
224 ITR 677 · 1997 · Supreme Court
398
citing judgments

Amendments to the Income-tax Act that are curative, clarificatory, or beneficial in nature apply retrospectively from the date the original statutory provision was introduced, even if not explicitly stated.

CIT v. Vatika Township (P.) Ltd.
49 Taxmann.com 249 · 2014 · Supreme Court
294
citing judgments

Legislation is ordinarily presumed not to have retrospective operation, especially for taxing statutes unless explicitly stated or when intended to remove hardship for the assessee. The decision clarifies the principles for determining whether an amendment to a taxing statute applies prospectively or retrospectively, distinguishing between clarificatory and substantive amendments.

CIT v. Paul Brothers
216 ITR 548 · 1995 · High Court
164
citing judgments

Once a claim for deduction under section 80-IA or 80-IB is allowed in the initial assessment year and is not subsequently withdrawn, the revenue is estopped from denying the deduction for subsequent years on the same grounds.

Sunil Kumar Agarwal v. CIT
372 ITR 83 · 2015 · High Court
159
citing judgments

The Assessing Officer is duty-bound to refer the valuation of property to the Departmental Valuation Officer under Section 50C(2) when an assessee disputes the stamp duty valuation or if there is a discrepancy between the actual sale consideration and the guideline value. This reference is mandatory, even if not explicitly requested by the assessee, to ensure a realistic fair market value and avoid injustice.

Kapurchand Shrimal v. CIT
131 ITR 451 · 1981 · Supreme Court
143
citing judgments

Appellate authorities in income-tax proceedings have the jurisdiction and duty to correct all errors of lower authorities. They must remit matters for proper or fresh adjudication and issue appropriate directions to ensure substantial justice, unless expressly forbidden by statute.

Nirma Industries Ltd. v. DCIT
283 ITR 402 · 2006 · High Court
136
citing judgments

Interest received on delayed payments for sales is considered part of the sale proceeds and is eligible for deduction under Section 80-IA as business income.

Rajeev Kumar Agarwal v. ACIT
149 ITD 363 · 2014 · ITAT
104
citing judgments

Curative amendments, such as a proviso to Section 40(a)(ia) introduced to remove undue hardship, apply retrospectively even without specific legislative declaration, rectifying shortcomings and obviating unintended difficulties.

Ltd. v. DCIT
76 Taxmann.com 268 · 2016 · High Court
101
citing judgments

Where the Assessing Officer performs an elaborate analysis to determine disallowance under Section 14A, the mere absence of a specific record of dissatisfaction with the assessee's calculation does not nullify the disallowance, provided the statutory steps are followed.

Judgments on Section 50C

Smt. Nilanjana Chakraborti, Kolkata vs. DCIT, Circle - 22, Kolkata

In the result, appeal of the assessee is allowed for statistical purposes

ITA 2440/KOL/2017[2013-14]Status: DisposedITAT Kolkata09 Nov 2018AY 2013-14

Bench: Sri J. Sudhakar Reddy & Sri S.S. Viswanethra Ravi) Assessment Year: 2013-14 Smt. Nilanjana Chakraborti…………..………...........…………..……………….…...……..….…….....Appellant 99B, Kankulia Road Kolkata – 700 029 [Pan : Acupc 49992 P] Vs. Deputy Commissioner Of Income Tax, Circle-22, Kolkata.……......………………..........Respondent Appearances By: Shri Manish Tiwari, A/R, Appeared On Behalf Of The Assessee. Shri Robin Choudhury, Addl. Sr. D/R. Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : October 16Th , 2018 Date Of Pronouncing The Order : November 9Th , 2018 Order Per J. Sudhakar Reddy, Am :- This Appeal Filed By The Assessee Is Directed Against The Order Of The Learned Commissioner Of Income Tax (Appeals)-6, Kolkata, (Hereinafter The ‘Ld. Cit(A)’), Dt. 03/08/2017, Passed U/S 250 Of The Income Tax Act, 1961 (Hereinafter The ‘Act’), Relating To Assessment Year 2013-14, On The Following Grounds:- “1. That On The Facts & In The Circumstances Of The Case, Ld. Cit(A) Has Erred In Holding The Erroneous Determination Of Long Term Capital Gain At Rs.72,50,000/- By Ld. Dcit On Erroneous Belief & Misconception Of Law By Denying The Benefit Claimed U/S 54F Of Income Tax Act, 1961 Of The Appellant. 2. That The Appellant Craves Leave To Add, Amend, Adduce Or Alter Any Ground Or Grounds On Or Before The Hearing Of The Appeal.”

Section 250Section 271(1)(C)Section 50CSection 54Section 54ESection 54F

K T Dongre & Co. P.Ltd, Mumbai vs. ITO RG 10(2)(1), Mumbai

In the result, the appeal filed by the assessee is allowed

ITA 4733/MUM/2013[2008-09]Status: DisposedITAT Mumbai30 Oct 2018AY 2008-09

Bench: Shri Sandeep Gosain & Shri N.K. Pradhanm/S. K.T. Dongre & Co. P. Ltd. Income Tax Officer-10(2)(1) C/O. Shyam Malpani & Assocaites Aayakar Bhavan, M.K. Road 307, Chartered House Vs. Mumbai 400020 297/299, Dr. C.H. Street Mumbai 400002 Pan – Aaack9366J Appellant Respondent Appellant By: Shri K. Gopal Respondent By: Shri Manoj Kumar Singh Date Of Hearing: 30.08.2018 Date Of Pronouncement: 30.10.2018 O R D E R Per Sandeep Gosain, Jm This Appeal Filed By The Assessee Is Directed Against The Order Of The Cit(A)-21, Mumbai Dated 25.03.2013 & It Relates To A.Y. 2008-09. 2. The Grounds Raised By The Assessee Reads As Under: - “1. The Hon'Ble Commissioner Of Income Tax (Hereinafter Referred As "Cit (A)") Has Erred Confirming The Order Of The Learned Assessing Officer Making Addition Long Term Capital Gain Of Rs.2,90,67,850/- Based On Agreement For Sale Dated 12.10.2007 Entered Into With M/S. Nensee Construction Pvt. Ltd. Inspite Of The Fact That There Is No Performance On The Part Of The Concerned Parties In Relation To The Such Agreement Of Sale. Therefore, There Is No Transfer Or Deemed Transfer Within The Meaning Of Provisions Of Income Tax Act, 1961. Therefore, Question Of Taxing Such Capital Gains Which Had Not Been Accrued Or Deemed To Had Been Accrued Does Not Arise. Such Long Term Capital Gain Has Been Worked Out By Considering The Sale Consideration At Rs.5,34,02,500/- As Against Agreement Price Of Rs.1,80,00,000/- By Invoking Provisions Of Section 50C Of The Income Tax Act, 1961 In Utter Disregard To The Pending Litigations I.E. The Company Petition No.809 Of 2003 Filed By An Alleged Creditor For Winding Up Of The Assessee Company & Also A Cloud In The Title Due

For Appellant: Shri K. GopalFor Respondent: Shri Manoj Kumar Singh
Section 143(3)Section 50C