TMI Blog2020 (6) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... the various factors. Therefore, the guideline value may not always represent the market value of the property. Because of deeming provision, Section 50C of the Act, the guideline value has to be adopted in case the market value or the agreed price between the parties was less than the guideline value fixed by the Government. When there was a difference between the dates of agreement for sale and the actual execution of registrated sale deed another question may arise, whether the guideline value as on the date of agreement has to be adopted or on the date of execution of sale deed has to be adopted. Once the assessee entered into an agreement of sale of the property, the purchaser has the right to enforce the agreement specifically throu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hearing was served on the assessee by RPAD. The Registry has placed on record, the proof of service of notice to the assessee. Inspite of notice by RPAD, the assessee chose to remain absent when the appeal was taken up for hearing. Therefore, we heard the Ld. Departmental Representative and proceeded to dispose the appeal on merit. 2. The Ld.Representative for the Revenue submitted that the assessee entered into an agreement for sale of his property on 04.08.2012 for a total consideration of ₹ 19 crores. On the date of agreement, the assessee has received ₹ 6 crores. However, the sale deed was executed and registered on 02.05.2013. The assessee adopted the guideline value as on 04.08.2012 for computing the capital gain. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for a total sale consideration of ₹ 19 crores. It is not in dispute that the guideline value on 04.08.2012 being the date of agreement for sale is not more than ₹ 19 crores. The claim of the Revenue appears to that is on 02.05.2013 when the assessee executed the sale deed for registration, the guideline value was more than ₹ 19 crores. Therefore, the Assessing Officer adopted the guideline value by applying Section 50C of the Act. 3.1 The object of introduction of Section 50C is to tax a deeming income of capital gain when the assessee executed a registered sale deed below the guideline value prescribed by the respective State Government. The question arises for consideration is when there was an agreement for sale of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isdom incorporated first proviso to Section 50C of the Act by Finance Act, 2016 with effect from 01.04.2017. This is to clarify the existing position of law and to avoid further litigation. Therefore, this Tribunal is of the considered opinion that first proviso to Section 50C of the Act, is applicable retrospectively. It does not create any new right between the parties. It simply clarifies the existing position of law. Therefore, the judgment of the Apex court in M/s. Vatika Township (P) Ltd., supra may not be applicable to the facts of this case. The CIT(A) after referring to first proviso to Section 50C of the Act, directed the Assessing Officer to adopt the guideline value as on 04.08.2012, being the date of agreement and there afte ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
