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TMI Blog2020 (9) TMI 367X X X X Extracts X X X X X X X X Extracts X X X X ..... mari, Visakhapatnam [ 2016 (12) TMI 1406 - ITAT VISAKHAPATNAM ] directed the AO to adopt the value of the property as on the date of execution of the agreement for capital gains We direct the AO to adopt the value of the property for the purpose of section 50C of the Act for computing capital gains as on the date of execution of agreement to sale, but not as on the date of sale deed. Accordingly, we set aside the order of the Ld. CIT (A) and remit the matter back to the file of the AO for limited purpose of verification of SRO value as on the date of sale agreement for determination of the capital gains. The AO is required to give opportunity to the assessee before passing the order. Appeal of the assessee is allowed for statistical purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 50C of the Act. In response to which the assessee has filed explanation stating that he had received the advance in the F.Y.2002-03 from Sri M. Ravi Kumar by way of cheque and agreement was entered with the prospective buyer for sale of the property, therefore, argued that the value of the property for the purpose of capital gains required to be taken as per the date of sale agreement, but not as on the date of sale deed. However, the AO did not accept the contention of the assessee, since the sale deed does not contain the details of payments and mention of sale agreement in the sale deed. Hence, rejected the contention of the assessee and held that capital gains required to be assessed adopting the SRO value as per the sale deed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Government of Andhra Pradesh which has placed restrictions on registration of the land, which was ultimately settled by the orders of Hon'ble High Court of Andhra Pradesh in Writ Petition No. 2679 of 2007 dated 13-2-2007 and subsequently the assessee has registered the lands to the buyers. The assessee also placed copy of the order of Hon'ble High Court of Andhra Pradesh in page No. 53 to 56 of the paper book. Therefore, submitted that there was sufficient and reasonable cause for not registering the land as agreed by the agreement and as per the proviso to section 50C of the Act, the SRO value as on the date of agreement required to be considered for the purpose of capital gains. Hence requested to set aside the order of the L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss the income adopting the SRO value as per section 50C as on the date of sale deed without verifying the contents of the agreement and correctness of the contents by making cross verifications with the intended purchaser. Therefore, we are unable to accept the argument of the Ld. DR that no credence to be given to the unregistered agreement. The dates of payments were mentioned and the payments were made by cheque. Therefore, we have no reason to disbelieve the genuineness of the contents of the agreement. It is also brought to our notice that the assessee has filed writ petition before the Hon'ble High Court of Andhra Pradesh in Writ Petition No. 2679 of 2007 stating that the Government had issued the notification u/s. 22-A of the Reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lot of litigations as to consideration shown in document conveying title and payment of stamp duty. To overcome the litigations, the provision of section 50C of the Act has been inserted to the statute w.e.f. 1-6-2003 wherein it is made mandatory to adopt value u/s. 50C of the Act for the purpose of determination of consideration. A proviso to section 50C of the Act has been inserted by the Finance Act, 2016 w.e.f. 1-4-2007 to resolve the genuine and intended hardship, in the case in which the date of agreement to sale is prior to the date of sale and market value of the property as on the date of agreement to sale and date of sale deed is different. The said proviso to section 50C of the Act has been examined by the coordinate bench of IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f computation of capital gain u/s. 50C of the Act. Since the facts are identical, we direct the AO to adopt the value of the property for the purpose of section 50C of the Act for computing capital gains as on the date of execution of agreement to sale, but not as on the date of sale deed. Accordingly, we set aside the order of the Ld. CIT (A) and remit the matter back to the file of the AO for limited purpose of verification of SRO value as on the date of sale agreement for determination of the capital gains. The AO is required to give opportunity to the assessee before passing the order. Accordingly, appeal of the assessee is allowed for statistical purpose. 7. In the result, appeal of the assessee is allowed for statistical purpose. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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