Скачать или смотреть WHETHER SECTION 50C IS APPLICABLE IN CASE OF COMPULSORY ACQUISITION OF LAND AND BUILDING?

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Case Summary:


[2023] 454 ITR 367 ( Cal )

[ IN THE CALCUTTA HIGH COURT ]

PRINCIPAL COMMISSIONER OF INCOME-TAX v. DURGAPUR PROJECTS LTD.

T. S. SIVAGNANAM and HIRANMAY BHATTACHARYYA JJ.

February 24, 2023.

Section. 50C

Assessment Year: 2015-16

Favouring: Assessee

50C: Special provisions for full value of consideration in certain cases

WHETHER SECTION 50C IS APPLICABLE IN CASE OF COMPULSORY ACQUISITION OF LAND AND BUILDING?

In a case of compulsory acquisition of land by the Govt. there is no room for suppressing the actual consideration received on such acquisition
In case of compulsory acquisition the transfer of property take place by operation of law

The transfer of property Act, 1882 and India registration Act, 1908 do not apply to compulsory acquisitions

The question of payment of stamp duty also does not arise in such transfer so section 50C cannot be applied

CBDT in its circular 36 of 2016 has clarified that compensation received in respect of an award or agreement which has been exempted from the levy of Income tax under section 96 of the right to Fair Compensation And Transparency in Land Acquisition, Rehabilitation And Resettlement Act, 2013 shall also not be taxable under the provisions of Income Tax Act, 1961, even if there is no specific provision of exemption for such compensation in the Income-Tax Act, 1961

In the present case Land was acquired by NHAI

Calcutta HC held that there is no necessity for an assessment of valuation of the property by the stamp valuation authority in the present case and
hence section 50C not applicable


Cases referred to :
Ambattur Clothing Co. Ltd. v. Asst. CIT [2010] 326 ITR 245 (Mad) (para 4)
Gopa Ram v. Union of India (S. B. Civil Writ Petition No. 12746 of 2017 dated 22-1-2018)
(Raj) (para 5)
ITO v. Southern Steel Ltd. [2018] 61 ITR (Trib) 126 (Hyderabad) (para 6)
Kotak Mahindra Bank Ltd. v. A. Balakrishnan [2022] 19 Comp Cas-OL 230 (SC) (para 17)
Mohd. Shahabuddin v. State of Bihar [2010] 4 SCC 653 (para 17)
Nathi Devi v. Radha Devi Gupta [2005] 2 SCC 271 (para 17)



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