AMIT GIRDHARBHAI PATEL,VADODARA vs. THE ACIT, CIRCLE-1(1)(1), VADODARA

ITA 811/AHD/2024Status: DisposedITAT Ahmedabad14 August 2025AY 2012-13Bench: Smt. Annapurna Gupta (Accountant Member), Shri T.R. Senthil Kumar (Judicial Member)12 pages
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What did the Tribunal hold?

The Tribunal agreed that full consideration was received and possession handed over in AY 2011-12, thus no taxable event occurred in AY 2012-13. Applying the retrospective provisos to Section 50C, it found that the consideration received as per the agreement (Rs. 80,00,000/-) was higher than the prevailing Jantri rate (Rs. 75,57,600/-) for AY 2011-12, negating the application of Section 50C for AY 2012-13. Consequently, the addition made by the AO was deemed invalid and ordered to be deleted.

What were the facts?

The assessee's assessment for AY 2012-13 was reopened under Section 147 due to a property sale where the stamp duty valuation (Rs. 2.39 Cr) significantly exceeded the declared consideration (Rs. 1.02 Cr), attracting Section 50C. The assessee contended that the transfer, including receipt of full consideration (Rs. 80 lakhs) and possession, occurred in AY 2011-12 as per Section 2(47)(v), and that the retrospective provisos to Section 50C (introduced by Finance Act, 2016) supported taking the stamp duty value on the agreement date (16-02-2010), which was lower than the actual consideration received in AY 2011-12.

What were the issues?

Whether Section 50C of the Income Tax Act, 1961 was correctly applied for Assessment Year 2012-13, given that the property transfer (possession and full consideration) occurred in the preceding year, and considering the retrospective effect of the provisos to Section 50C regarding the stamp duty valuation date.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 148,Section 50C,Section 2(47),Section 2(47)(v),Section 48,Section 234A,Section 234B,Section 234C,Section 234D

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Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH

Before: Smt. Annapurna Gupta & Shri T.R. Senthil Kumar

PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:-

This appeal is filed by the Assessee as against the appellate order dated 29.02.2024 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “CIT(A)”), arising out of the reassessment order passed under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2012-13. I.T.A No. 811/Ahd/2024 A.Y. 2012-13 Page No 2

2.

Brief facts of the case is that the assessee is an individual filed his Return

The order continues below.

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