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TMI Blog2017 (5) TMI 1108X X X X Extracts X X X X X X X X Extracts X X X X ..... nue is "whether having regard to Section 50 (C) of the Income Tax Act, 1961, the additions made by the Revenue in the course of assessment for Assessment Years 2005-06, were justified." The assessee had sold a plot by sale deed dated 16.09.2004. The capital gains were brought out and offered to the tax authorities. The Assessing Officer sought recourse to Section 50 (C) (1) of the Income Tax Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion and applied Section 50 (C) of the Income Tax Act. The assessee was unsuccessful before the CIT (A) who upheld the gains so determined by the Assessing Officer. The ITAT relied upon the ruling in Sanjeev Lal v. CIT, (2014) 365 ITR 389 (SC) and the ITAT (Vizag) decision in M/s Lahri Promoters v. ACIT - ITA No.12/Vizag/2009. The Revenue urges that the only exception to Section 50 (C) is the sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registered. The record would indicate that two deeds were executed, i.e., first on 27.05.2004 which too was registered in accordance with the provisions of the local laws. That agreement contained stipulations as to the payments and the time period within which all amounts were to be made over to the seller. It is again not in dispute that these payments were in fact made substantially within the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale deeds though not strictly correct in one sense, describes the nature of the agreements between the parties. Quite possibly there can be a situation like the present one where transaction recorded in the agreement to sell are acted upon over a period of time - and in the interregnum the circle rates are increased. Application of Section 50 (C) in such cases would result in extreme hardship. Pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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