TMI Blog2021 (9) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... h effect from the date on which section 50C was introduced. Keeping in view that this decision we hold that the benefit of the 1st Proviso to section 50C is available to the assessee. We accordingly direct the AO to re-compute the capital gain chargeable to tax in the hands of the assessee by taking the proportionate share of the assessee in fair market value of the property as on 05.10.2010 as determined by the DVO as deemed sale consideration. AO is also directed to allow deduction on account of the indexed cost of acquisition of the property while computing the capital gain in accordance with law. - I.T.A. No. 120/Kol/2021 - - - Dated:- 27-8-2021 - P.M. Jagtap, Vice President For the Appellant : K. M. Roy, CA For the Respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as well as the subsequent notice issued u/s. 142(1) of the Act. During the course of assessment proceedings, the assessee himself appeared before the AO and submitted that the share of sale consideration being only ₹ 55,545/-, there was no capital gain chargeable to tax in his hands for the year under consideration. The submission of the assessee was not found acceptable by the AO and adopting the stamp duty valuation as the deemed sale consideration of the property, the AO brought to tax ₹ 10,84,330/- being the assessee's share in such deemed sale consideration in the hands of the assessee under the head long term capital gain in the assessment completed u/s. 144/147 of the Act vide order dated 28.12.2017. 3. Against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration. 4. The submissions made on behalf of the assessee as above did not find favour with the Ld. CIT(A). According to him, the 1st Proviso to section 50C having been inserted in the statute with effect from 01.04.2017, the same was not applicable in the case of the assessee involving assessment year 2013-14. He accordingly rejected the contention of the assessee and confirmed the addition of ₹ 10,84,330/- made by the AO on account of long term capital gain. Aggrieved by the order of the Ld. CIT(A), the assessee has preferred this appeal before the Tribunal. 5. I have heard the arguments of both the sides and also perused the relevant material available on record. The learned counsel for the assessee has contended that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicable retrospectively with effect from the date on which section 50C was introduced. Keeping in view that this decision of the Hon'ble Madras High Court, we hold that the benefit of the 1st Proviso to section 50C is available to the assessee. We accordingly direct the AO to re-compute the capital gain chargeable to tax in the hands of the assessee by taking the proportionate share of the assessee in fair market value of the property as on 05.10.2010 as determined by the DVO at ₹ 13,50,850/- as deemed sale consideration. The AO is also directed to allow deduction on account of the indexed cost of acquisition of the property while computing the capital gain in accordance with law. 6. In the result, the appeal of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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