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| The Tax Publishers2020 TaxPub(DT) 5319 (Sur-Trib) INCOME TAX ACT, 1961
Section 50C
Where assessee entered into agreement to sale and received a part of sale consideration via cheque then stamp value of that date was applicable and not of date on which transaction got registered. The First and Second Proviso inserted by way of Finance Act, 2016 with effect from 1-4-2017 is declaratory and curative in nature and have retrospective effect.
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Capital gains - Invocation of section 50C - Agreement to sale entered into on 21-2-2011 - Transaction registered at later date
The assessee sold his agricultural land at a sale consideration price of Rs. 5.99 crore [50% of 11.98 crore] vide registered sale deed dated 5-10-2011. The assessee further stated that he agreed to sell the agricultural land on 24-2-2011 and buyer agreed to execute agreement to sale and paid sum of Rs. 2.50 lakhs by account payee cheque at the time of execution of agreement to sale. At the prevalent time, the Jantri Rate was Rs. 7200 per sqr.mt. only. And in case market price at the Jantri Rate is taken the price would come to Rs. 1.95 crore. While the assessee sold at Rs. 5.99 crore which is three times more than the prevailing Jantri Rate. Held:: There was no dispute about sale of land by assessee. Further, there was no dispute that initial agreement to sale was executed on 21-2-2011. AO had not brought any material on record to dispute that on the date of execution of agreement to sale assessee had not received part consideration through account payee cheque. Further, it was not in dispute that Stamp Valuation/Jantri Rate at the time of execution of agreement to sale was Rs. 7200 per sq.mtr. The Jantri Rate was revised with effect from 18-4-2011. The registered sale deed of transfer of plot of land sold by assessee was presented for registration on 16-6-2011. The Stamp Valuation Authority charged value of stamp on the prevailing Jantri Rate of the land on the date of registration of instrument. Further, First and Second Proviso to section 50C was clearly applicable on the facts of assesses case. In view of the factual and legal discussion, Stamp Duty Valuation as on 21-2-2011 was to be considered for the purpose of section 50C and, therefore, no addition was called for. The First and Second Proviso inserted by way of Finance Act, 2016 with effect from 1-4-2017 is declaratory and curative in nature and have retrospective effect.
Applied:Dharamshibhai Sonani v. ACIT 2016 TaxPub(DT) 4420 (Ahd-Trib)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
INCOME TAX ACT, 1961
Section 54F
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