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10-01-2019, Manish Films, Section 50C, 50B, 43B, Tribunal Indore

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2 months 1 week ago #8345 by amit
Section - 50C, 50B, 43B
Order Date - 10-01-2019
Favouring - Assessee Partly allowed for the statistical purposes
Court - Tribunal Indore
Appellant - Manish Films Pvt. Ltd.
Respondent - ITO
Justice - KUL BHARAT JM & MANISH BORAD AM
Citation - 119Taxpundit141
Appeal No. - ITA No.152/Ind/2015
Asstt. Year - 2010-11

Order

PER : KUL BHARAT, J.M:

This appeal by the assessee is directed against order of the CIT(A)-I, Indore dated 30.10.2014 pertaining to the assessment year 2010-11. The assessee has raised following grounds of appeal:-

2. The facts giving rise to the present appeal are that the assessee filed return of income declaring Nil income on 29.9.2010. The case was selected for scrutiny assessment. Assessing officer thereafter issued statutory notice. In response to notice, the assessee attended the assessment proceedings and filed explanation to the query raised during the assessment proceedings. The assessing officer observed that assessee company had claimed slump sale of asset of the company at Rs.2,25,00,000/-. However, as per the stamp valuation authority, value was adopted at Rs.4,18,00,000/-. The A.O. therefore adopted the value u/s 50C of the Act and assessed the income at Rs.2,09,99,101/-. Against this, the assessee preferred an appeal before Ld. CIT(A) who after consideringsubmissions partly allowed the appeal. Thereby, the Ld. CIT(A) affirmed the finding of the assessee in respect of adopting the value of property as per the stamp valuation authorities. Against this finding, the assessee is in present appeal. Ground Nos.1 to 2.6 are against adopting the value as per the stamp valuation authority. Ld. Counsel for the assessee vehemently argued that the authorities below have failed th appreciate the facts in right perspective and submitted that section 50C of the Act would not be applicable on the facts of the present case as in the present case, the assessee has made slump sale. It has to be covered u/s 50B of the Act. As per section 50B of the Act, the valuation assessed by stamp valuation authorities cannot be adopted.

3. Ld. Counsel for the assessee has taken us through theprovisions of section 50B of the Act and sale deed executed by the vendor assessee. He also drew our attention to the newspaper clippings by the vendee of the property in support of contention that the sale so executed was a slump sale. He has also drawn our attention to the definition of slump sale as defined u/s 2(42C) of the Act. In support of this contention Ld. Counsel has relied on the decision of the special bench of this Tribunal, Mumbai in the case of DCIT Vs. Summit Securities Ltd. in ITA No.4977/Mum/2009. Further, Ld. Counsel for the assessee submitted that even if it is not treated as a slump sale, in that event also there would not be application of section 50C of the Act as the property in question is a lease hold property on 30 years lease by Indore Development Authority. He submitted that what is transferred are merely the lease hold rights pertaining to the capital assets. Ld. Counsel in this regard has relied upon the judgement of Hon'ble Mumbai High Court rendered in the case of CIT Vs. Green Hotels and Estates Pvt. Ltd. in ITA No.735 of 2014 reported in 389 ITR 0068 (Bom.). Ld. Counsel further relied on the decision of coordinate bench of the Tribunal in the case of Atul G. Puranik Vs. ITO reported in 11 ITR 0120. The reliance is also placed on the decision rendered by the coordinate bench of this Tribunal in the case of Kancast Pvt. Ltd. Vs. ITO (2015) 68 SOT 0110 (Pune). Ld. Counsel submitted that in the light of these decisions, the assessing officer ought not to have invoked the provisions of section 50C of the Act.

4. On the contrary, Ld. D.R. opposed both the submissions of the assessee and supported the orders of the authorities below. He submitted that the contention of

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