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2008 (9) TMI 944 - AT - Income TaxValuation of the property - sale of office premises - invocation of provisions of s. 50C - HELD THAT:- We find that the contention of the assessee that the agreement to sell the property was entered into on the date of first instalment of the amount in consideration i.e. 11th May, 2002 and handed over the possession of the property in question by the seller to the assessee (sic) on the payment of entire consideration on 4th Sept., 2002 has not been accepted by the lower authorities in absence of a written agreement on those dates. With the above contentions, the assessee intended to make a case that sale was completed well before coming into operation of the provisions of s. 50C of the Act w.e.f. 1st April, 2003, hence the provisions of s. 50C of the Act are not applicable in the present case merely because the sale deed was registered two years later on 10th March, 2004. We thus in the interest of justice while setting aside the orders of the lower authorities remand the matter to the file of the AO. An alternative contention of the ld AR remained that if the sale is considered to have come into effect on the date of registration of sale deed i.e. 10th March, 2004, then the relevant AY for the invocation of provisions of s. 50C of the Act would be the AY 2004-05 and not the AY 2003-04 under consideration. Since we have remanded the matter to the file of the AO, the AO is directed to consider this aspect of the matter while deciding the issue as directed above. The ground No. 1 is accordingly allowed for statistical purposes. Valuation of the property - difference between the value of land estimated by the Valuation Officer and shown by the assessee - CIT(A) upheld the action of the AO for invoking provisions of s. 50C and made addition - HELD THAT:- We concur with the contention of the ld AR which is also supported by the decision of Jodhpur Bench of the Tribunal in the case of Navneet Kumar Thakkar vs. ITO [2007 (3) TMI 317 - ITAT JODHPUR] that provisions of s. 50C cannot be invoked in absence of a registered document i.e. in absence of the value adopted or assessed by any authority of State Government i.e. the stamp valuation authority for the purpose of payment of stamp duty in respect of such transfer. Admittedly, in the present case, there was no registered sale deed to enable the AO to adopt or assess the value assessed by the stamp valuation authority for the purpose of s. 48 treating the same as full value of the consideration received or accruing as a result of such transfer. There was also no evidence that the assessee had received higher amount in consideration against the sale of that plot than shown by the parties in the agreement to sale. We thus while setting aside orders of the lower authority direct the AO to delete the addition in question. The ground No. 2 is thus allowed. The appeal is accordingly partly allowed.
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