DESH MITTER GAIND,PANCHKULA vs. INCOME TAX OFFICER, WARD-1, PANCHKULA, PANCHKULA, HARYANA

Facts

The assessee sold an immovable property for Rs. 2,42,00,000/-. The Stamp Valuation Authority assessed the value at Rs. 3,16,20,230/-. The Assessing Officer (AO) added the difference of Rs. 74,20,230/- to the assessee's income under Section 50C of the Income Tax Act, 1961.

Held

The Tribunal held that the amended provisions of Section 50C, which are curative in nature, apply retrospectively. The date of the agreement to sell and the part payment received by cheque before the agreement date are relevant for determining the full value of consideration. Therefore, the value as per the agreement should prevail.

Key Issues

Whether the value adopted by the stamp valuation authority or the sale consideration as per the agreement to sell should be taken for computing capital gains under Section 50C, especially when the agreement date and sale deed registration date differ and part payment was received before the agreement date.