2023 (7) TMI 407

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....capital gain of Rs. 3,00,59,2501- ignoring the fact that though deals regarding sale of lands were finalized during the F.Y. 2014- 15 but sale-deeds of the properties were executed in the F.Y. 2015-16. During the year circle rates of agriculture land for the F.Y. 2015-16 were increased by Stamp Valuation Authority, Haryana and as per section 50C of the I. T. Act, 1961, the value adopted by stamp Authority has to be considered for the purpose of computation of capital gain. 2. Whether on the facts and in the circumstances of the case, the CIT(A) has erred in relying too much on amended provisions of section 50C wherein a proviso was inserted w.e.f. 01.04.2017 whereas in this case the transaction relates to F.Y. 2015-16. 3. Whether on the....

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....by the assessee is at Rs. 7,7 5,09,500/-. 5. The Assessing Officer made the impugned addition by invoking provisions of Section 50C of the Income-tax Act, 1961 [the Act, for short] and ld. CIT(A) deleted the addition holding that the amendment to Section 50C of the Act is retrospective and allowed benefit of sale consideration as per agreement to sell in which sale consideration was lesser than the value adopted by the stamp valuation authority. 6. The ld. DR has strongly supported the findings of the Assessing Officer stating that there was no agreement prior to the execution of the transfer deed. Therefore, there is no basis to adopt the sale consideration as per the agreement. 7. This contention of the ld. DR has to be rejected, as in....

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....on 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 ....