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TMI Blog2018 (8) TMI 2005X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of section 50C of the Act. 3. The learned Authorized Representative (the ld. A.R.) of the assessee submitted that the assessee has sold a residential house as per agreement to sale dated 04.07.2010 for total consideration of Rs. 35 lakhs of which Jantri value was at Rs. 23,73,710 at the time of agreement to sale and two cheques of Rs. 1,50,000 each dtd. 06.07.2010 were received. It was also stated that sale deed was registered on 10.08.2011 and that total five cheques including two mentioned in the agreement, totaling to Rs. 7 lakhs were received before 06.04.2011 and rest of cheques of Rs. 28 lakhs were received on 09.08.2011. It was therefore, argued that the AO has wrongly considered the stamp duty valuation at Rs. 55,07,145 on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2017 wherein it has been provided that stamp duty assessed or assessable on the date of the agreement for the purpose of computing to value of consideration, or part thereof has been received by account payee cheque or by bank draft order or by use of electronic system through a bank account, on or before the date of the agreement for transfer would be deemed to be sale consideration for that property sold. In the case of the assessee, a sum Rs. 3 lakh has been received on the date of the agreement by way of cheque, therefore, the fair market value available as on the date of agreement is to be adopted for the purpose of section 50C(1) of the Act. Though the proviso is inserted with effect from 01.04.2017 but same is applicable retrospecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kh were received on or before 06.04.2011as part payment and balance amount of Rs. 28 Lakh was received by cheque on the date of execution of registered sale deed dtd. 10.08.2011. The amendment made by insertion of proviso to section 50C of the Act, by Finance Act 2016 has been made with effect from 01.04.2017 wherein it has been provided that stamp duty assessed or assessable on the date of the agreement for the purpose of computing to value of consideration, or part thereof has been received by account payee cheque or by bank draft order or by use of electronic system through a bank account, on or before the date of the agreement for transfer would be deemed to be sale consideration for that property sold. In the case of the assessee, a su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has to be considered for the purpose of section 50C of the Act if provision of section 50C are to be invoked. Since, the stamp duty value of property sold were at Rs. 23,73,710 as against sale consideration of Rs. 35 lakhs as shown in the agreement to sale dtd. 04.07.2010 and in fact received by the assessee. Therefore, sale consideration at Rs. 35 Lakh being more than stamp duty value as on date of agreement to sale would be considered for computation of gains if any. Accordingly, the addition of Rs. 20,07,145 made by the AO is therefore, directed to be deleted. This view is further supported by the provision of section 56(2)(vii) has specifically provided that where the agreement for fixing the amount of consideration for the transfer of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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