The Assessee purchased the Transfer of Development rights (TDR). The stamp duty payable was higher than the actual consideration paid by the assessee. The Assessing Officer treated the difference as deemed consideration liable to taxed as per provisions of section 56(2)(vii)(b) of the Act which was affirmed by the CIT (A). On appeal the Tribunal held that the capital asset transferred is Development rights in the land and not the land itself. After comparing the provision of section 50C and 269UA, the Tribunal held that the provision of section 50C cannot be invoked. Addition was deleted. (AY. 2014-15)
Sawmya Sathyan (Smt.) v. ITO (2021) 211 TTJ 101 (Bang.)(Trib.)
S. 56 : Income from other sources-Transferable Development Rights (TDR)-Shown as stock in trade-Deemed consideration-Provision section 50C is not applicable-Deemed consideration cannot be assessed as per section 56(2)(vii (b)) of the Act. [S. 50C, 56(2)(vii)(b), 269UA]