Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (5) TMI 1807 - AT - Income TaxLong term capital gain - addition interpreting the provision u/s 50C - transfer of capital asset in which year - difference between the market value as per Stamp Valuation Authority within the meaning of section 50C and the sale consideration for sale of properties - HELD THAT:- Assessee has received 25% of sale consideration in the assessment year 2011-12, the year in which the agreement to sell was made and due to the reasons beyond the control of the assessee viz. permission to sell from the Collector could not be obtained in that year itself and the same could be obtained in the assessment year 2012-13. Taking respectful note of the decision of Sanjeev Lal [2014 (7) TMI 99 - SUPREME COURT] wherein held that when the agreement to sell in respect of any capital asset is made then obviously some rights had been transferred in favour of the vendee/purchaser and the remaining rights which the appellant-seller had in respect of the capital asset, in question, had been extinguished as after execution of the sale agreement it is not validly permissible to sell the same property to someone else as per the provisions of Transfer of Property Act. Amendment inserted by way of Finance Act, 2016 w.e.f. 1.4.2017 to the said provision for full valuation of consideration in certain cases u/s 50C - The mandate of the legislature is that where the date of agreement fixing the amount of consideration and the date of registration for the transfer of capital asset are not the same, the value adopted or assessable by the stamp valuation authority on the date of agreement may be taken for the purpose of computing the full value of consideration for such transfer. This amendment is applicable w.e.f. 1.4.2017 as per the amendment itself. In our considered opinion, this amendment is not a substantial amendment but the same is clarificatory, therefore, if this amendment is taken into consideration in the light of the dicta laid down in the case of Sanjeev Lal [2014 (7) TMI 99 - SUPREME COURT] then it has to be held that the date of agreement of sale is relevant for the purpose of computing full value of consideration of such transfer and hence the conclusion drawn by the CIT (Appeals) is quite reasonable and meaningful. CIT (Appeals) was quite correct in adopting the same and following the order of ITAT, Delhi Bench in the case of ITO vs. Modipan Limited[2015 (1) TMI 609 - ITAT DELHI] We are inclined to accept the contention of assessee which was accepted by the CIT (Appeals) that the circle rate prevailing on the date of registration of agreement to sell and not circle rate as on the date of sale deed, should be adopted as sale consideration for computation of income of the assessee from LTGS u/s 50C of the Act. Decided against revenue.
|