II. Direct Tax Case laws:
1. CIT Vs. Income Tax Settlement Commission(ITSC, WP No. 3900 of 2013, Date of decision: 13.06.2013, Bombay High Court
Decision: In favour of Appellant
Section: 245D of Income Tax Act, 1961
Whether
Income Tax Settlement Commission can admit application made u/s 245C of
the Act in absence of satisfaction being recorded from the report of
the Commissioner and upon hearing the applicant u/s 245D (2C) of the Act
in respect of full & true disclosure by the applicant.
Held No,
The
Commission is bound to determine in the course of its proceedings under
sub-section 2C of Section 245D as to whether there has been a full and
true disclosure by the applicant. The Commission has to be satisfied
from the report of the Commissioner furnished u/s 245D(2B) of the Act
and upon hearing the applicant that the application is valid or not. It
is only then the ITSC has the jurisdiction to proceed with application
made with it as being satisfied from the report of Commissioner before
admitting of application is a fundamental aspect which goes to the root
of its jurisdiction to entertain an application under Section 245C of
the Act. Thus, the order of the Settlement Commission was held to be
unsustainable and thus, it was set aside.
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2. ACIT Vs. Shrikishan Dass, ITA No. 915/ Del/ 2012, Date of pronouncement: 07.06.2013, ITAT - Delhi Bench
Decision: in favour of assessee
Section: 50C of Income Tax Act, 1961
Assessment Year: 2008-09
Whether transfer of leasehold rights in land and building would attract provisions of section 50C of the I.T. Act, 1961?
Held : No
Transfer
of rights in land and building is different from transfer of land and
building and as section 50C of the Act applies only to a capital asset,
being land or building or both, it cannot be made applicable to lease
rights in a land. It was held that if payment of stamp duty for the
purpose of the transfer is not required, then there is no occasion to
look into other conditions as mentioned in sec. 50C of the Act.
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