M.N.BHANDARI, J. - (1.) By this appeal, a challenge is made to the order dated 4th October, 2017, passed by the Income Tax Appellate Tribunal, Jaipur Bench, Jaipur (in short "the Tribunal"), dismissing the appeal preferred by the assessee.
(2.) The facts of the case are narrated in brief. It is a case where a land was sold by the assessee-appellant under a registered sale deed on consideration. The Assessing Authority made addition of Rs. 41,80,805/- under the head of capital gain. The aforesaid was questioned by the assessee in reference to Section 50C of the Income Tax Act, 1961 (in short "the Act of 1961").
(3.) It was submitted that Section 50C of the Act of 1961 was not applicable to the facts of this case. It was not a transfer of capital asset but the rights. It was for the reason that land in question was under acquisition for RIICO. The land was sold by the khatedar to a Co-operative Society. A writ petition for regularisation of land was filed by the Co-operative Society. It was allowed by this court. The Apex Court reversed the judgment on an appeal preferred by the RIICO. In view of the above and due to acquisition, land vested in the State Government. The possession of it remained with the RIICO and not with the assessee. The sale deed was wrongly taken to be a transfer of capital asset, rather, it was only of rights. In view of the above, Section 50C of the Act of 1961 was not applicable yet covering the case by the aforesaid provision, additions were made.;