Section 50C of The Income Tax Act,1961
Ramesh Jhawar
(Querist) 26 November 2009
This query is : Resolved
Please reply
Whether amendment effective from 01-10-2009 shall be applicable for the persons keeping property as stock-in trade.
Thanks
Sincerly yours,
Ramesh
A V Vishal
(Expert) 26 November 2009
Your query is unclear. Please ask it precisely what you want to know?
Raj Kumar Makkad
(Expert) 26 November 2009
The amendment is not with retrospective effect rather it is applicable prospectively.
Vineet
(Expert) 08 December 2009
Section 50C finds its place in the Act under chapter IV E dealing with Capital Gains. The property held as stock-in-trade does not fall under the category of capital asset and therefore provisions applicable for capital gains shall not be applicable on stock in trade.
Therefore as section 50C itself is not applicable with reference to transactions involving properties held as stock-in-trade, the amendment also does not have any effect.
The revenue authorities may always take into consideration stamp duty valuation to determine the reasonable sale price of stock in trade if they suspect suppression of sales receipts. However, such reference does not get deeming support from law and has to be proved with positive evidences of unaccounted receipts.
