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2022 (8) TMI 376 - AT - Income TaxCapital Gain on sale of land - application of provision of section 50C - HELD THAT:- Since the consideration was fixed and paid by the parties at the time of agreement of sale on 09.07.2010 and possession of the land was also given to the buyer, only the registration of the Sale Deed was pending which was done on 24.03.2012 i.e. these two events took place in two different assessment years. In such a situation amended provisions of Section 50C(1) of the Act brought by the Finance Act, 2016 will be applicable in the case of the assessee, which are retrospective. therefore, as per amended provisions of section 50C(1) for computation of Capital Gain in the hands of assessee, the AO should consider the guideline value of the land which the stamp duty authority has adopted for charging of stamp duty on the date of agreement to sale and not on the date of sale deed. We therefore find merit in the contention of the assessee and accordingly decide this issue in favour of the assessee. Amount of consideration - As noted that the assessee has actually received a consideration of Rs. 4,36,000/- and Rs. 1,00,000/- i.e. in aggregate Rs. 5,36,000/- by way of 2 Sale Deeds for completion of the sale of parcel of land referred to in the Agreement to Sale dated 09.07.2010. Since, the actual consideration received by the Seller / Assessee for Rs.5,36,000/- is higher than the guideline value to be adopted following the judicial pronouncements with reference to the amended provisions of Section 50C(1) which is Rs. 4,08,000/- as discussed in preceding paras, therefore the consideration for calculation of Capital Gains would be higher of these two amounts which is the actual amount received by the assessee i.e. Rs. 5,36,000/-. Deduction u/s.54F - AO has rightly and undisputedly already allowed the claim of the assessee for exemption u/s 54F of the Act for purchase of land and construction of house at Raipur for Rs.16,05,000/-, however, the only dispute was regarding the amount of consideration u/s section 50C(1) of the Act, which was taken by AO for Rs.2,16,08,500/, whereas the same should be Rs. 5,36,000/- as decided by us in terms of our observations as above. Appeal of assessee is allowed.
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