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2014 (10) TMI 747 - HC - Income TaxApplicability of section 50C - Cases of transfer of land or building where the transaction was not registered with the stamp duty valuation authority within the purview of section 50C or not - Valuation of agricultural land as on 1.1.1981 – Held that:- The AO held that the provisions of Section 50C of the Act were applicable as the transfer of property had been carried out vide a registered sale deed and not in pursuance of sale agreement - CIT(A) held that capital gains arise on transfer of a capital asset and the effective date for computing the capital gain is the date of transfer of capital asset - Since the computation of income from capital gain on sale of land was to be made on the amount of full consideration received or accruing on the date of transfer and on the date of transfer of the land, the provision of Section 50C was not attracted, the AO was not justified in adopting the value assessed by the stamp duty valuation officer on a subsequent year - When the registration of the land sold by the assessee was done after the date of transfer of land, the provisions of Section 50C of the Act were not applicable – the order of the Tribunal is to be set aside and the matter is remitted back to the Tribunal for fresh adjudication in the light of Commissioner of Income Tax III, Ludhiana vs. M/s New P. Grand Resorts, GT Road, Jagraon [2014 (10) TMI 619 - PUNJAB & HARYANA HIGH COURT] - Decided in favour of revenue.
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