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TMI Blog2021 (1) TMI 1085X X X X Extracts X X X X X X X X Extracts X X X X ..... r the purpose of valuation of the property for the purpose of section 50C is to be taken the date of agreement. This proviso has been held to be applicable with retrospective effect by case of Dharamshibhai Sonani [ 2016 (9) TMI 1259 - ITAT AHMEDABAD ] Assessee has submitted before the ld.CIT(A) that simultaneous sale deed was registered on survey no.932, 951, 899 and 894 where stamp duty valuation authority has also accepted the rate at ₹ 200/- per sq.meter and the sale agreement were entered on 30.12.2010. We are satisfied that for the purpose of computation of long term capital gain on sale of land, the value shown by the assessee at the rate of ₹ 200/- per sq.meter is to be adopted. We accordingly direct the AO to take value disclosed at the rate of ₹ 200/- per sq.meter, and thereafter calculate the long term/short term capital gain, if any, leviable in the hands of the assessee. First ground of appeal is accordingly allowed. Disallowance expenditure on account of banakhat agreement, land leveling and its fencing on the ground that the same are excessive - HELD THAT:- We find that disallowance of expenditure in respect of land leveling, fencing an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale value less by ₹ 3,42,06,900/- with an intent to evade taxes. The ld.AO thus worked out net capital gain of ₹ 3,86,58,478/- after indexation and other expenses. A show cause notice was issued to the assessee as to why net capital gain worked out by the AO of ₹ 3,86,58,478/- should not be added to the income of the assessee. It was explained by the assessee that Government of Gujarat has changed jantri rate of the land from time to time; that the assessee had agreed to sell the land on 30.12.2010 at ₹ 140/- per sq.meter; that the assessee executed the sale deed at the rate of ₹ 200/-, which was more than the Government rate, at which rate nearby land owners of Rethal village executed their sale deed. This rate has been accepted by the collector of stamp. It was further explained by the assessee there are two jantri rates were prevailing on 18.4.2011 i.e. rate of ₹ 1670/- per meter which was subsequently revised to ₹ 618/-. The AO should take actual sale consideration received by the assessee as per the agreement to sell i.e. at ₹ 140/- per sq.meter, and the assessee has executed the sale deed at ₹ 200/- per square meter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deed was registered. 6. We have duly considered rival contentions and gone through the record carefully. The case of the assessee is that he has entered into an agreement to sell the land admeasuring 23270 sq.meters comprising in survey no.973 of Village Rethal, Ta. Sanand, Dist. Ahmedabad with Infinity Infra Projects P.Ltd. This agreement was executed on 30.12.2010 and consideration was settled at ₹ 46,54,000/-. On 31.12.2010 the value of the land for the purpose of stamp duty was fixed at ₹ 140/- per sq.meter by the stamp valuation authority. The assessee has agreed to sell at the rate of ₹ 200/- per sq.meter. According to the assessee, he received ₹ 5.00 lakhs as token consideration and ₹ 41,54,000/- on 26.4.2011. The sale deed was registered on 23.11.2011 bearing no.7606. The State of Gujarat for the purpose of charging stamp duty has re-determined the value of the property in this year, and new rates were notified on 18.4.2011. Since the assessee presented the sale deed on 24.5.2011 for registration before the sub-Registrar, Sanand, but was not registered on account of insufficiency of stamps put on it. The purchaser has paid stamp duty at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale deed. Thus, by virtue of agreement to sell, some right is given to the vendee by the vendor. It is an encumbrance on the property and considering this aspect, one has to adopt the rate for the purpose of section 50C on the date on which agreement was executed. In the present case, the payments have been made through account payee cheque, and time gap between the presentation of the sale deed for registration vis- -vis revision of rates for the purpose of charging higher stamp duty is not substantive and considerable. The sale deed was presented on 24.5.2011 where as the rates were revised on 18.4.2011. The time gap between the agreement vis- -vis sale deed is also not substantive. Agreement is dated 31.12.2010 and sale deed was presented for registration on 24.5.2011. Considering this hardship for the vendors, section 50C was amended and second proviso has been brought on the statute book, which authorized an assessee to argue that where the amount of consideration or part thereof has been received by way of account payee cheque, then the appointing day for the purpose of valuation of the property for the purpose of section 50C is to be taken the date of agreement. This pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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