TMI Blog2017 (5) TMI 1108X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 27.05.2004), and all subsequent payments made have adhered to the time schedule agreed upon in respect of the amounts, the application of Section 50(C) would be unwarranted. ITAT’s conclusion that the transaction was covered by two deeds, both of which characterised as sale deeds though not strictly correct in one sense, describes the nature of the agreements between the parties. Quite po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment for Assessment Years 2005-06, were justified. The assessee had sold a plot by sale deed dated 16.09.2004. The capital gains were brought out and offered to the tax authorities. The Assessing Officer sought recourse to Section 50 (C) (1) of the Income Tax Act, 1961 noticing that the circle rate had undergone an upward revision by 16.09.2004. The agreement to sell the property was entered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e gains so determined by the Assessing Officer. The ITAT relied upon the ruling in Sanjeev Lal v. CIT, (2014) 365 ITR 389 (SC) and the ITAT (Vizag) decision in M/s Lahri Promoters v. ACIT - ITA No.12/Vizag/2009 . The Revenue urges that the only exception to Section 50 (C) is the second sub-section which enables the Assessing Officer to determine the market value upon an examination by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s registered in accordance with the provisions of the local laws. That agreement contained stipulations as to the payments and the time period within which all amounts were to be made over to the seller. It is again not in dispute that these payments were in fact made substantially within the time period so stipulated. In the meanwhile, some time after 27.05.2004 and before the date of registratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e parties. Quite possibly there can be a situation like the present one where transaction recorded in the agreement to sell are acted upon over a period of time - and in the interregnum the circle rates are increased. Application of Section 50 (C) in such cases would result in extreme hardship. Parliament has recognized this mischief and has added proviso to Section 50 (C) (i) w.e.f. 01.04.2017. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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