Section 50D of the Income Tax Act

Income-tax Act, 2025: s.80

Section 50D of the Income-tax Act, 1961 corresponds to section 80 (Fair market value deemed to be full value of consideration in certain cases) of the Income-tax Act, 2025.

Read section 80 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 50D is Sudhir Menon HUF v. ACIT (45 Taxmann.com 176), cited in 21 of the 32 judgments on BharatTax that turn on this section.

Leading authorities on Section 50D

Sudhir Menon HUF v. ACIT
45 Taxmann.com 176 · 2014 · ITAT
21
citing judgments

Section 56(2)(vii)(c) does not apply to additional shares allotted pro rata to existing shareholders, as there is no scope for any property being received in such a situation.

CIT v. R. Lingmallu Raghukumar
247 ITR 801 · 2001 · Supreme Court
20
citing judgments

Consideration paid to a retiring partner, even if it exceeds the balance in their capital account, is not chargeable to tax as it does not constitute a 'transfer'.

Khoday Distilleries Ltd. v. CIT
307 ITR 312 · 2008 · Supreme Court
17
citing judgments

The term 'allotment of shares' signifies the appropriation of previously unappropriated capital, and shares only come into existence upon such allotment. This principle is relevant for understanding the issuance of bonus shares.

Sify Software Ltd. v. ACIT
80 Taxmann.com 273 · 2017 · Reported
10
citing judgments

A Commissioner can revise an assessment under section 263 if the Assessing Officer failed to conduct an independent inquiry or made an error in the assessment order. The revision is not justified if the Assessing Officer considered the assessee's submissions and relied on relevant case laws.

PCIT v. Kurule Paper Mills P. Ltd.
380 ITR 64 · 2016 · High Court
6
citing judgments
Vide CIT v. Patel Proteins (P) Ltd. 2017 Tax Pub(DT) 1188 (Guj-HC)
393 ITR 274 · 2017 · High Court
3
citing judgments

Judgments on Section 50D

Deputy Commissioner of Income Tax, (International Taxation )-2, Hyderabad vs. Arudra Vellanki, Hyderabad

Appeals are dismissed in above terms

ITA 516/HYD/2021[2012-13]Status: DisposedITAT Hyderabad08 Apr 2022AY 2012-13

Bench: Shri S.S. Godara & Shri L. P. Sahu

For Appellant: Shri Sunil Goutam, (D.R.)For Respondent: Shri M.V. Joshi, C.A. for D.Shshank, Adv
Section 50BSection 50C(1)Section 50D

The Pr Commissioner of Income Tax vs. Smt Sarojini M Kushe

Appeal stands dismissed

ITA/475/2016HC Karnataka01 Dec 2021

Bench: S.SUJATHA,HANCHATE SANJEEVKUMAR

Section 260Section 260ASection 48Section 50CSection 50D

Trincas Vinimay (P) Ltd., Kolkata vs. I.T.O., Ward-4(1), Kolkata

In the result, the appeal of the assessee is allowed

ITA 316/KOL/2020[2013-14]Status: DisposedITAT Kolkata18 Dec 2020AY 2013-14

Bench: Shri P.M. Jagtap, Vice- & Shri A.T. Varkey

Section 50D

Mr. Vivekanand Padegal, Bengaluru vs. Assistant Commissioner of Income Tax, Circle-7(2)(1), Bengaluru

In the result, assessee’s appeal is allowed

ITA 923/BANG/2018[2013-14]Status: DisposedITAT Bangalore04 Sept 2020AY 2013-14

Bench: Shri A. K. Garodia & Smt. Beena Pillai

For Appellant: Shri. S. Ramasubramanian, CAFor Respondent: Shri. Sundar Rajan, Addl. CIT (DR)(ITAT), Bengaluru
Section 133(6)Section 50D

Pr Commissioner of Wealth Tax-6 vs. M R Kodandram

Appeals stand dismissed

WTA/11/2017HC Karnataka18 Oct 2019

Bench: RAVI MALIMATH,ASHOK S.KINAGI

Section 260Section 260A

Inox Renewables Limited, Vadodara vs. ACIT, Circle1(1)(2), Vadodara

In the result, the appeal of the assessee is allowed

ITA 1731/AHD/2017[A.Y- 2012-13, F.Y- 2011-12]Status: DisposedITAT Ahmedabad07 Mar 2019

Bench: Shri Rajpal Yadavआयकर अपील सं./ Ita No.1731/Ahd/2017 "नधा"रण वष"/Asstt. Year: 2012-2013 Inox Renewables Ltd. Vs. Acit, Cir.1(1)(2) Vadodara. Abs Towers 2Nd Floor Old Padra Road Vadodara 390 007 Pan : Aacci 4628 K

For Appellant: Shri Parin Shah, ARFor Respondent: Shri Anand Kumar, Sr.DR
Section 143(2)Section 144C

Gujarat Fluorochemicals Limited, Vadodara vs. The Deputy Commissioner of Income Tax, Circle-1(1)(1), Vadodara

In the result, both appeals of the assessee are partly allowed

ITA 805/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad03 Aug 2018AY 2012-13

Bench: Shri Rajpal Yadav & Shri Amarjit Singhआयकर अपील सं./ Ita No.805/Ahd/2017 "नधा"रण वष"/Asstt. Year: 2012-2013 & Asst.Year : 2013-2014

For Appellant: Shri S.N. Soparkar and Shri Parin Shah, ARFor Respondent: Shri O.P. Vaishnav, CIT-DR
Section 115JSection 143(2)Section 143(3)Section 14A

Gujarat Flurochemicals Limited., Vadodara vs. The ACIT, Circle-1(1)(1), Vadodara

In the result, both appeals of the assessee are partly allowed

ITA 2744/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad03 Aug 2018AY 2013-14

Bench: Shri Rajpal Yadav & Shri Amarjit Singhआयकर अपील सं./ Ita No.805/Ahd/2017 "नधा"रण वष"/Asstt. Year: 2012-2013 & Asst.Year : 2013-2014

For Appellant: Shri S.N. Soparkar and Shri Parin Shah, ARFor Respondent: Shri O.P. Vaishnav, CIT-DR
Section 115JSection 143(2)Section 143(3)Section 14A

DCIT, Jaipur vs. Advent Infraprojects Pvt. Ltd., Jaipur

In the result, the appeal filed by the Revenue is allowed for statistical purposes

ITA 333/JPR/2017[2015-16]Status: DisposedITAT Jaipur15 Nov 2017AY 2015-16

Bench: Or During The Hearing Of This Appeal.” 2. There Was A Search U/S 132 Of The Act On 17.12.2014 In The Case

For Appellant: Shri D.C. Agrawal (Adv.)For Respondent: Shri Vrindera Mehta (CIT)
Section 132Section 50DSection 69B

Smt. K.R.Yashodha, Bangalore vs. Income-Tax Officer, Bangalore

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

ITA 745/BANG/2017[2007-2008]Status: DisposedITAT Bangalore06 Oct 2017AY 2007-2008

Bench: Shri Sunil Kumar Yadav & Shri Jason P Boazassessment Year : 2007-08

For Appellant: Shri. V. Srinivasan, AdvocateFor Respondent: Shri. Dandapani, JCIT
Section 147Section 148Section 234ASection 54F

Renowned Engineers Private Ltd., Chennai vs. ACIT, Chennai

In the result, the assessee’s appeal is partly allowed

ITA 1267/CHNY/2016[20101-11]Status: DisposedITAT Chennai19 Dec 2016

Bench: Shri Sanjay Arora & Shri G. Pavan Kumarआयकर अपील सं./Ita No.1267/Mds/2016 "नधा"रण वष" / Assessment Year : 2010-11

For Appellant: Shri R.Vijayaraghavan, AdvocateFor Respondent: Shri Shiva Srinivas, JCIT
Section 143(3)Section 45Section 50CSection 50C(2)Section 52Section 55A

G.S.Sathyanarayana Gupta, Bangalore vs. Income-Tax Officer, Bangalore

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

ITA 1323/BANG/2016[2012-13]Status: DisposedITAT Bangalore17 Oct 2016AY 2012-13

Bench: Shri S.K.Yadav & Shri A. K. Garodia

For Appellant: Shri C. Sandeep, CAFor Respondent: Shri AR Sreenivasan, JCIT