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TMI Blog2019 (3) TMI 1915X X X X Extracts X X X X X X X X Extracts X X X X ..... der dated 17.03.2016 under section 143(3) read with section 147 of the Income Tax Act, 1961 (hereinafter 'the Act'). 2. The only issue in this appeal of assessee is against the order of CIT(A) confirming the action of the AO in making addition of long term capital gain by adopting the fair market value as per section 50C of the Act as on the date of registration of sale deed on 10.05.2012 as against the assessee executed sale agreement on 02.10.2009. For this assessee has raised following two grounds: - "1. On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in dismissing the appeal and that too without appreciating the facts fully and properly. Full facts of the case have been set out in the Statement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an be taken for the purpose of computation of short term capital gain. But the AO treated the differential i.e. difference between the sale consideration as per stamp duty valuation as on 10.05.2012 at Rs. 5,37,95,500/- and agreement value on 02.10.2009 at Rs. 4.92 crores and further treated the difference as short term capital gain at Rs. 45,97,500/-. Aggrieved assessee preferred the appeal before CIT(A). The CIT(A) also confirmed the action of the Assessing Officer. Aggrieved assessee came in appeal before Tribunal. 4. We have heard rival contentions and gone through the facts and circumstances of the case. We have noted the facts of the case that the understanding arrived at between the parties as contained in the agreement dated 02.10. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e adopted or assessed or assessable by the stamp valuation authority on the date of agreement may be taken for the purposes of computing full value of consideration for such transfer: Provided further that the first proviso shall apply only in a case where the amount of consideration, or a part thereof, has been received by way of an account payee bank draft or by use of electronic clearing system through a bank account, on or before the date of the agreement for transfer." Admittedly, the provisions of section 50C of the Act have been amended as to apply from AY 2017-18. However, since the amendment is clarificatory in nature, ought to be considered since the inception of Section 50C of the Act, which is AY 2003-04. The assessee is in c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of capital gains is concerned, will adopt stamp duty valuation, as on 29.6.2005, of the property sold as it existed at that point of time. In case the assessee is not content with this value being adopted under section 50C, he will be at liberty to seek the matter being referred to the DVO for valuation, again as on 29.6.2005, of the said property. As a corollary thereto, the subsequent developments in respect of the property sold (e.g. the conversion of use of land) are to be ignored. It is on this basis that the capital gains will be recomputed. With these directions, the matter stands restored to the file of the Assessing Officer for adjudication de novo, after giving an opportunity of hearing to the assessee and by way of a speaking ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtion of words "at the option of the assessee" between "stamp valuation authority on the date of agreement may" and "be taken for the purposes of computing full value of consideration for such transfer", in first provisio to Section 50C(1), could have made the legal provision even more unambiguous." 7. We find from the facts of the case that the AO has adopted stamp duty value of the property as on the date of sale deed. The facts relating to the market value as on the date of agreement to sale and as on the date of sale deed is not disputed. The only dispute is whether the stamp duty value as on the date of agreement to sale or sale deed to be considered for the purpose of computation of capital gain. The purpose of introducing section 50 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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