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TMI Blog2023 (8) TMI 1524X X X X Extracts X X X X X X X X Extracts X X X X ..... also remained uncompiled with. In view of the above the Assessing Officer proceeded to complete the assessment u/s 147 r.w.s. 144 of the I.T. Act. 3. During the course of assessement proceedings, the Assessing Officer noted that information was received from the I & CI Wing of the Department for the financial year 2012-13 that the assessee along with another person has sold immovable property being House on Plot No.18 comprising of ground floor having built up area of 2590 sft admeasuring 585.55 sq.yards equivalent to 489.52 sq.meters in Survey No.74/9 situated in the layout of Sevamandal Society (Shantiniketan) Mahendra Hills, East Maredpally, Secunderabad Cantonment for a total sale consideration of Rs. 22,00,000/- as against the SRO value of Rs. 1,07,93,300/-. He noted that the assessee became the owner of the property by virtue of inheritance in the year 1987 after the death of her mother Smt. P. Uma Rani on 30.09.1997 along with her father Sri Premmaraju Venkata Krishna Rao. Smt. P. Uma Rani (assessee's mother) originally purchased the property under a sale deed bearing document No.`560 of 1986 dated 14.08.1986 duly registered in the office of SRO Maredpally, Secunderabad. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration of which over 90% is through banking channels. 4. The learned DRP failed to appreciate the facts that capital gain on sale of property falls in AY 2007-08 itself as per the provisions of section 2(47) of the I.T Act and not in the year under consideration. 5. Without causing prejudice to ground nos.2, 3 and 4, the learned DRP-1 failed to appreciate the fact that the proviso to section 50C being beneficial in nature, has retrospective effect and hence the A.O. is not justified in adopting SRO value of Rs. 1,07,93,300/- as sale consideration instead of the actual sale consideration of Rs. 22,00,000 in the computation of capital Gain. 6. The appellant craves leave to add amend or alter any of the above grounds at the time of hearing of the appeal." 6. The learned Counsel for the assessee referring to the agreement of sale dated 15.06.2006 submitted that the property was agreed to be sold for a sale consideration of Rs. 22,00,000/- out of which an amount of Rs. 20.00 lakhs was received by way of 3 different cheques and an amount of Rs. 2.00 lakhs by way of cash. He submitted that due to some litigation, the property could not be sold and vide sale deed dated 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vs. ACIT (2021) 127 taxmann.com 376. c) Ahmedabad Bench of the Tribunal in the case of Ramesh Govindbhai Patel vs. Income Tax Officer (2020) 118 Taxmann.com 201. 7. The learned DR, on the other hand, heavily relied on the order of the Assessing Officer and the DRP. He submitted that the assessee in the instant case has sold the immovable property on 5.11.2012 for a consideration of Rs. 22.00 lakhs and the SRO value is Rs. 1,07,93,300/-. Therefore, the Assessing Officer was fully justified in adopting 50C value at Rs. 1,07,93,300/- and after allowing the indexed cost of acquisition has correctly made the addition of Rs. 27,86,328/- in the hands of the assessee being her 50% share. 8. We have heard the rival arguments made by both the sides, perused the orders of the AO and the learned DRP and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us by both sides. We find the AO in the instant case invoking the provisions of section 50C has made addition of Rs. 27,86,328/- in the hands of the assessee being her 50% share on account of sale of the immovable property. While doing so he rejected the claim of the assessee that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h other electronic mode as may be prescribed on or before the date of the agreement for transfer. Provided also that where the value adopted or assessed or assessable by the stamp valuation authority does not exceed one hundred and ten per cent of the consideration received or accruing as a result of the transfer, the consideration so received or accruing as a result of the transfer shall, for the purposes of section 48 be deemed to be the full value of the consideration." 10. A perusal of the page 3 of the sale deed read as under: NOW, THEREFORE, THIS DEED OF SALE WITNESSETH AS FOLLOWS: THAT in pursuance of the aforesaid agreement and in total sale consideration sum of Rs. 22,00,000/-, the VENDEES/PURCHASERS well and truly paid the said agreed total sale consideration sum to the VENDORS/SELLERS in the following manner: a) Rs. 2,00,000/- (Rupees Two Lakhs only) by way of Cheque bearing No. 372562, dated 15.08.2006 drawn on the Karur Vysya Bak Limited, R.P. Road Brach, Secunderabad; b) Rs. 9,00,000/- (Rupees Nine Lakhs only) by way of Cheque bearing No. 372563, dated 15.09.2006 drawn on The Karur Vysya Bank Limited, R.P. Road Branch, Secunderabad; c) Rs. 9,00,000/- (R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ld. counsel for the assessee that in view of the proviso to section 50C(1) of the IT Act where the date of the agreement fixing the amount of consideration and the date of registration for the transfer of the capital asset are not the same, the value adopted or assessed or assessable by the stamp valuation authority on the date of agreement may be taken and, thus, the assessee has correctly adopted the rates applicable on the date of the agreement as against the date of actual sale. We find the proviso to section 50C(1) read as under:- "50C. (1) Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed or assessable by any authority of a State Government (hereafter in this section referred to as the "stamp valuation authority") for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed or assessable shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer : [Provided that where the date of the agreement fixing the amount of c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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