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2022 (10) TMI 832 - AT - Income TaxLong term capital gain - adopting the circle rate of sale consideration prevailing on the date of registry instead of date of agreement to sell - whether assessee is entitled to get benefit of the proviso to Section 50C(1) of the Act or not? - HELD THAT:-In implementation of Section 50C (1) of the Act the parties in many times faced undue hardship and difficulties when agreement to sell of a property was executed in earlier years and transferred took place in later years. During the intervening period price of the property has increased but the vendor is bound to perform agreement and can claim only the agreed consideration.The second proviso to Section 50C(1) of the Act also provided some safeguards and check and balances to ensure that only in genuine case of prior agreements. The assessee had entered into an agreement to sell on 17.01.2012 and received the maximum sale consideration on or before 20.07.2012 itself and also found that the first payment received i.e. on 17/01/2012 was by way of RTGS, thereby the conditions in second proviso of Section 50C(1) has been complied by the assessee. Therefore we have no hesitation to hold that the benefit of the first proviso to Section 50C(1) of the Act has to be extended to the assessee and the rate prevailing as on the date of agreement should be considered for the purpose of computing the full value of consideration of such transfer. The Ld. CIT(A) has committed error by not extending the benefit of the proviso to Section 50C (1) of the Act and sustained the addition, which deserves to be deleted. Appeal filed by the assessee is allowed.
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