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TMI Blog2014 (10) TMI 747X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of income from capital gain on sale of land was to be made on the amount of full consideration received or accruing on the date of transfer and on the date of transfer of the land, the provision of Section 50C was not attracted, the AO was not justified in adopting the value assessed by the stamp duty valuation officer on a subsequent year - When the registration of the land sold by the assessee was done after the date of transfer of land, the provisions of Section 50C of the Act were not applicable – the order of the Tribunal is to be set aside and the matter is remitted back to the Tribunal for fresh adjudication in the light of Commissioner of Income Tax III, Ludhiana vs. M/s New P. Grand Resorts, GT Road, Jagraon [2014 (10) TMI 619 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by holding that the order of the AO is based on whims and fancies whereas the AO has specifically pointed out in the assessment order that the assessee has taken the valuation of agricultural land on 1.1.1981, on the basis of small piece of land having commercial value and the AO has taken the base of valuation by considering large size piece of land? 2. Briefly, the facts necessary for adjudication of the controversy involved as narrated in the appeal may be noticed. The return of income was filed by the assessee on 7.11.2006 declaring total income of ₹ 14,75,180/- which comprised of salary, income from other sources and long term capital gains on sale of agricultural land. The return was processed under section 143(1) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice under section 148 of the Act was issued to him on 18.11.2008 to assess the escaped capital gains income. Vide notices under sections 142(1) and 143(2) of the Act dated 4.12.2009, the assessee was required to explain as to why the sale value of the land may not be adopted at the rate of ₹ 25 lacs per acre as fixed by the State Government for the purpose of payment of stamp duty; as to why provisions of Section 50C of the Act may not be invoked for calculating the long term capital gains and fixation of cost of acquisition as on 1.1.1981. The assessee submitted that Section 50C of the Act was not applicable to his case because land in question had been sold by way of modes other than those specified in the said section. After consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 2014 whereby the sale consideration received by the assessee on sale of his agricultural land and shown by him as such for computing income under the head 'Capital gains' was accepted by the Stamp Valuation authority and judgment of this Court in Commissioner of Income Tax III, Ludhiana vs. M/s New P.Grand Resorts, GT Road, Jagraon, ITA No.877 of 2010, decided on 5.3.2014, the addition made by the Assessing officer was unjustified. 4. Learned counsel for the revenue submitted that the Tribunal had erred in deleting the addition. 5. We have heard learned counsel for the parties and perused the record. 6. The issue involved in the present case is applicability of Section 50C of the Act to the facts of the present case. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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