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TMI Blog2019 (3) TMI 1915X X X X Extracts X X X X X X X X Extracts X X X X ..... tute, there are 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. 01.06.2003 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. 01.04.2007 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. Assessee is bound by the value of sales consideration of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e circumstances of the case and in law, the learned CIT(A) erred in dismissing the appeal and that too without appreciating the facts fully and properly. Full facts of the case have been set out in the Statement of facts annexed hereto. 2. On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in dismissing the appeal and approving the action of the AO in determining the income at ₹ 88,66,895/- as against the returned income of ₹ 42,69,395/-. 3. Briefly stated facts are that the assessee has sold industrial land situated at Village Lahe, Taluka Shahpur, Thane to WAM (India) Pvt. Ltd. for a sum of ₹ 4,92,00,000/-. The assessee before AO submitted the copy of purchase and sale agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... came in appeal before Tribunal. 4. We have heard rival contentions and gone through the facts and circumstances of the case. We have noted the facts of the case that the understanding arrived at between the parties as contained in the agreement dated 02.10.2009 which came to be finally executed between the parties vide agreement dated 10.05.2012. The terms of agreement between the parties in both the agreements dated 02.10.2009 and 10.05.2012 are same and have to be read in conjunction with each other. We noted that on account of the Total Consideration of ₹ 4,92,00,000/-, the assessee received substantial payments which are as under: - Cheque No. Date Amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment fixing the amount of consideration and the date of registration for the transfer of the capital asset are not the same, the valve adopted or assessed or assessable by the stamp valuation authority on the date of agreement may be taken for the purposes of computing full value of consideration for such transfer: Provided further that the first proviso shall apply only in a case where the amount of consideration, or a part thereof, has been received by way of an account payee bank draft or by use of electronic clearing system through a bank account, on or before the date of the agreement for transfer. Admittedly, the provisions of section 50C of the Act have been amended as to apply from AY 2017-18. However, since the amendment is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... executed on 29.6.2005 and the partial sale consideration was received through banking channels, the Assessing Officer, so far as computation of capital gains is concerned, will adopt stamp duty valuation, as on 29.6.2005, of the property sold as it existed at that point of time. In case the assessee is not content with this value being adopted under section 50C, he will be at liberty to seek the matter being referred to the DVO for valuation, again as on 29.6.2005, of the said property. As a corollary thereto, the subsequent developments in respect of the property sold (e.g. the conversion of use of land) are to be ignored. It is on this basis that the capital gains will be recomputed. With these directions, the matter stands restored to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... den on the taxpayers. Of course, assuming that my understanding of this statutory provision is in harmony with the legislative intention, insertion of words at the option of the assessee between stamp valuation authority on the date of agreement may and be taken for the purposes of computing full value of consideration for such transfer , in first provisio to Section 50C(1), could have made the legal provision even more unambiguous. 7. We find from the facts of the case that the AO has adopted stamp duty value of the property as on the date of sale deed. The facts relating to the market value as on the date of agreement to sale and as on the date of sale deed is not disputed. The only dispute is whether the stamp duty value as on t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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