TMI Blog2018 (10) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... For The Revenue : Shri R. Mohan Reddy ORDER PER S. RIFAUR RAHMAN, AM: This appeal is filed by the assessee against order of CIT(A) - 2, Hyderabad, dated 25/11/2016 for AY 2007-08. 2. Brief facts of the case are that the assessee stated to have sold an immovable property for a consideration of ₹ 8,55,000/-. The AO noticed that the value of the said property as per the SRO as on the date of registration, is ₹ 21,38,750/- and hence the said amount was brought to tax u/s 50C of the Act. 2.1 Assessee preferred an appeal before the CIT(A) and contended that the market value of property as on the date of agreement of sale is ₹ 8,55,000/- and hence, this amount only has to be adopted as the sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeds admitted from the sale of property situated at S.No.134, at Saipur, Tandur, R.R.District, in an area admeasuring 855.5 sq. yards, as per the Agreement of sale enclosed, were ₹ 8,55,500/-. Further, the assessee had also enclosed the Certificate of Market Value as on 01-07-2005, as he had entered into Agreement of Sale on 09-07-200S (Page 89 of the Paper Book). The market value of the land as on 01-07-2005 was ₹ 500/per square yard, whereas the assessee sold the plot of land as per the agreement dt. 09-07-2005 @ ₹ 1,000/- per square yard i.e. double the value fixed by the SRO, on 01-07-2005. The assessee also received an amount of ₹ 1,55,500/- as advance on 09-07-2005 and the balance of R. 7,00,000/- was received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the Order of the assessing officer, who adopted the deemed sale consideration of ₹ 21,38,750/- under Section 50C of the I.T. Act, 1961 prevailing on the date of registration, ignoring the fact that the assessee entered Into sale agreement on 09-07-2005 and actually received sale consideration of ₹ 8,55,500/- only, as per the Sale Agreement. 6) The C.I.T. (Appeals) is wrong in not considering the fact that the registration of the sale deed, finally, is only fulfillment of contractual obligation imposed upon the assessee by virtue of sale agreement, and therefore, the deemed sale consideration u/s. 50C prevailing on the date of sale agreement will have to be adopted. 7) The C.I.T. (Appeals) is wrong in not discussi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the date of sale and revenue has not raised any objection on the genuineness of the document. The revenue objected that there was no recital on the sale deed. There is proof that the assessee has entered into agreement on 09/07/2005 and the documents submitted are found to be genuine. Therefore, in our view, the fair market value for the purpose of section 50C should be the value as existed on the date of agreement of sale. The coordinate bench of Vizag Tribunal in the case of M/s Lahiri Promoters in ITA No. 12/Vizag/2009, order dated 22/06/2010, held as below: 12. Thus, by executing the sale deed in June, 2005, the assessee has only completed the contractual obligation imposed upon it by virtue of the sale agreement. Since the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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