ITAT · Delhi Bench2024§50C
Shivdeep Tyagi v. ITO · ITAT Delhi on §50C: stamp-duty substitution does not apply to leasehold rights
Does §50C apply when what's transferred is a leasehold right?
No. §50C applies only to transfer of a capital asset being land or building, not to assignment of leasehold rights.
Reviewed by Sri P. Soma Shekar Reddy, IRS (R), Commissioner of Income Tax (Retd. / VRS) · Published 2026-07-07
Facts in brief
- The AO applied §50C stamp-duty value to a transfer of leasehold rights.
Issue before the bench
Whether leasehold rights fall within §50C's scope.
Held
§50C can be applied only to capital assets, not to leasehold rights.
Practitioner takeaway
Check the nature of the interest transferred before accepting any §50C substitution: tenancy and leasehold interests sit outside it.
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