M/s. Girdharlal Brothers Vs Addl.CIT/JCIT/DCIT/ACIT/ITO

Parties Involved

Facts Summary

The assessee, M/s. Girdharlal Brothers, filed an appeal against the order dated 11/01/2024 by NFAC, Delhi pertaining to Assessment Year 2018-19. The assessee claimed that the CIT(A) erred in confirming the action of the AO in making an addition of Rs.38.48 lakhs under Section 50C of the Act on cancellation of tenancy rights. The assessee had electronically filed his return of income on 24/09/2018 declaring income of Rs.36,400/-. The return was selected for scrutiny assessment and statutory notices were issued and served upon the assessee. While scrutinizing the return of income, the AO noticed that the assessee had received consideration for the transfer of immovable property. The assessee submitted the relevant and supporting documents including the deed of transfer. The assessee explained that the property was a tenancy property in a dilapidated and dangerous condition for its tenants/occupants. As the building was undertaken for redevelopment, the assessee would be given a permanent alternate accommodation. The assessee further explained that the said property was still under construction. The reply of the assessee was considered by the AO along with supporting documents but did not accept the contention of the assessee. The assessee reiterated the matter before the CIT(A), but without any success.…

Legal Issues

• 1. Whether the provisions of Section 50C of the Act apply on the facts of the case in hand.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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