Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 1650 - AT - Income TaxCapital gain computation - CIT-A adopting the SRO value as on the date of registration i.e., on 08.10.2010 as the deemed sale consideration in terms of S.50C rejecting actual consideration received by the appellant - non referring matter to the DVO for ascertaining the fair market value of the property for purposes of S.50C - whether to ascertain the value of the property as per section 50C it has to be taken on the date of sale agreement dated 17/07/2010 or on the date of sale deed dated 08/10/2010 ? - HELD THAT:- We find that the assessee by entering into agreement, he has received substantial amount i.e. ₹ 80 lakhs through banking channels and both the parties bound by the agreement and the purchase have interest on the property i.e. as sale agreement dated 17/07/2010. The assessee has to sell the property to the purchaser as per the sale agreement even though the sale agreement is not a registered. The ld. CIT(A) is not correct in saying that the unregistered sale agreement not valid in the eye of law. So far as lapses committed by the purchaser are concerned, once the assessee accepted the remaining amount subsequent to the date of 30/08/2010, it implies the assessee has acted in accordance with the terms of agreement dated 17/07/2010. Therefore, ld. CIT(A) is not correct in saying that the purchaser failed to fulfil the conditions laid down in the agreement, therefore, the assessee need not sell the property for the same price. As decided in SMT. CHALASANI NAGA RATNA KUMARI VERSUS ITO, WARD-3 (2) , VISAKHAPATNAM [2016 (12) TMI 1406 - ITAT VISAKHAPATNAM] Although, stamp duty value of the propety has been changed as on the date of sale deed, for the purpose of determination of deemed consideration u/s 50C of the Act, stamp duty value of the property as on the date of execution of agreement to sale should be adopted, instead of value on the date of execution of sale deed. Therefore, we are of the view that the A.O. was erred in adopting value of the property as on the date of sale deed to determine deemed consideration u/s 50C - we direct the A.O. to adopt value of the property as on the date of agreement to sale for the purpose of computation of capital gain u/s 50C Insofar as SRO value as on the date of agreement i.e. 17/07/2010, the counsel for the assessee has submitted that which is more than the sale consideration agreed by the assessee. This fact is not examined by the Assessing Officer. Therefore, we remit the issue back to the Assessing Officer for the limited purpose to ascertain the SRO value as on the date of agreement i.e. 17/07/2010 and the same is adopted as a sale consideration as per section 50C and complete the assessment as per law. Appeal filed by the assessee is allowed for statistical purposes.
|