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Tax Publishers
Reopening alleging non-invocation of Section 50C
in the hands of a non-resident assessee - year of application of Section 50C -
agreement in one year and transfer in another year
Facts :
Assessee a non-resident with her father had entered
into an agreement to sell a property on 15-06-2006 for Rs. 22 lakhs. The actual
transfer happened only during 2012-13. The SRO value of the property in 2012-13
was Rs. 1.07 crores. The AO chose to reopen the case under section 147 and made
additions for the difference between the SRO value vs Rs. 22 lakhs and passed
assessment order. DRP sustained the additions. On higher appeal, the plea of
the assessee was that the amendment made in Section 50C(1) vide Finance Act,
2015 giving choice to the assessee to substitute the SRO value in the year of
agreement especially if the date of transfer was different to the agreement
date was to be read retrospective in application.
Held in favour of the assessee that the amendment in
Section 50C(1) is to be read retrospectively thus the SRO value of the year
2006-07 ought to be seen by the AO and then the order to be revised
accordingly.
"Amendment to section 50C introduced by the Finance
Act 2016 for determining the full value of consideration in the case of the
immovable property is curative in nature and will apply retrospectively. The
Hon'ble Madras High Court in the case of CIT v. Shri VummundiAmarendran
has decided an identical issue and has held that the provisions of Section
50C(1) of the Act should be taken to be retrospective from the date when the
proviso exists. Similarly the Delhi Bench of the Tribunal in the case of Amit
Bansal v. ACIT and Ahmedabad ITAT in DharamshibhaiSonani v. ACIT
and in Rahul G. Patel has also held thus".
Case : Anupama
Krishna Rao Premaraju v. ITO 2023 TaxPub(DT) 5569 (Hyd-Trib)
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