Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2020 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (10) TMI 517 - HC - Income TaxCapital Gain computation - Whether agreement for Sale cannot be regarded as a transfer for the purpose of Section 2(47)(V) ? - Invoking provision of section 50C - assessee while computing Capital Gain had taken the sale consideration for the property at ₹ 19 crores which according to AO was not a full value of consideration because on the date when the property was sold, i.e., date on which the Deed of conveyance was executed and registered, the guideline value was much higher than the agreed sale price - whether proviso inserted in Section 50C has to be read retrospective or prospective? - HELD THAT:- AO could not have based his finding solely relying upon the guideline value especially when the Assessing Officer is not a person who is computing stamp duty under the provisions of Indian Stamp Act on the Deed of conveyance. Having observed so we need to take note of the next issue would be as to whether the proviso to Section 50C could be read to be prospective or retrospective. Case on hand is very straight forward case, where there is an Agreement for Sale, agreeing to sell the property at ₹ 19 Crores and a sum of ₹ 6 Crores has been received as advance sale consideration. The proviso to Section 50C(1) deals with cases where the date of the agreement, fixing the amount of consideration and the date of registration for the transfer of the capital assets are not the same, the value adopted or assessed or assessable by the stamp valuation authority on the date of agreement may be taken for the purposes of computing full value of consideration for such transfer. Thus an amendment by insertion of proviso seeks to relieve the assessee from undue hardship. No hesitation to hold that the proviso to Section 50C(1) of the Act should be taken to be retrospective from the date when the proviso exists. The assessee's consistent case was that the sale consideration agreed to be paid to him by the purchaser was ₹ 19 crores and ₹ 6 crores was received as advance on the date of entering into the Agreement for Sale. AO disbelieved the same and applied the guideline value at ₹ 27 crores on the date when the Sale Deed was executed and registered. - Decided against revenue.
|