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TMI Blog2024 (1) TMI 692X X X X Extracts X X X X X X X X Extracts X X X X ..... s of section 50C of the Act and it is required to re-compute the capital gains - HELD THAT:- From the bare reading of the section 50C(1) of the Act, and the first and second provisos, in the instant case, the date of agreement fixing the amount of consideration and the date of registration for transfer of the capital asset are not the same. The value adopted for the stamp duty valuation purposes as on the date of agreement shall be taken for the purpose of computing the full value of consideration for such transfer. Further, the second proviso also stipulates that where the amount of sale consideration, or a part thereof has been received by an account payee cheque or through banking channels, the first proviso to section 50C(1) shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ividual, Director in M/s. VTC Engineering Pvt Ltd., is deriving income from salaries, capital gains and income from other sources, filed his original return of income for the AY 2016- 17 on 29/4/2017 admitting the total income of Rs. 54,72,850/-. The return was summarily processed U/s. 143(1) of the Act on 14/6/2017. Subsequently, the case was selected for scrutiny under CASS to verify the following reasons viz., (i) deduction / exemption from capital gains and (ii) investment in immovable property. Thereafter, a notice U/s. 143(2) of the Act was issued electronically. Subsequently, a notice U/s. 142(1) of the Act was issued electronically on 12/9/2018. The assessee in response to the notices filed submissions through ITBA portal. The Ld. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Ld. DVO submitted his report on 21/4/2022 determining the value of the property at Rs. 8,23,96,160/- as on 31/1/2016. Adopting the value arrived at by the Ld. DVO, the Ld. AO computed the share of income of the assessee and passed the consequential order dated 12/10/2023 by granting a relief of Rs. 1,76,56,420/- based on the DVO report as against the original addition made by the Ld. AO. Aggrieved by the directions in the order of the Ld. CIT(A)-NFAC, the assessee is in appeal before the Tribunal by raising the following grounds of appeal: 1. The order of the Ld. CIT(A) is contrary to the facts and also the law applicable to the facts of the case. 2. The Ld. CIT(A) ought to have held that the addition made by the AO by computin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Ld. AR also submitted that the assessee has entered into an agreement on 30/12/2015 wherein the sale consideration has been determined and an advance amount of Rs. 1.50 Crs vide Cheque No. 915393, dated 14/8/2014 was received by the assessee. The Ld. AR therefore pleaded that as on the date of agreement, wherein a substantial amount of sale consideration has been partly received by the assessee, the SRO value, as per the provisions of section 50C of the Act, on the date of registration of the sale deed cannot be applied in the instant case. The Ld. AR therefore pleaded that the order of the Ld.CIT(A)-NFAC be set-aside. 7. Per contra, the Ld. Departmental Representative argued that the limited scrutiny includes the value to be adopte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Section 50C(1) of the Act is reproduced below for reference: 50C. (1) Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed [or assessable] by any authority of a State Government (hereafter in this section referred to as the stamp valuation authority ) for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed 25a [or assessable] shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer : [Provided that where the date of the agreement fixing the amount of consideration and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he second proviso also stipulates that where the amount of sale consideration, or a part thereof has been received by an account payee cheque or through banking channels, the first proviso to section 50C(1) shall be applied in those cases. In the instant case, we find that the agreement has been entered into on 30/12/2015 and the part consideration has been received on 14/8/2014 . Therefore, we find merit in the argument of the Ld. AR that the provisions of section 50C of the Act adopting the value for stamp duty purposes as on the date of sale deed could not be applied but the value as on the date of the agreement / date of receipt of advance has to be applied. We are therefore of the considered view that the provisions of section 50C(2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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