LEELAVATHI RAVINDRANATHAN,CHENNAI vs. ITO NON CORPORATE WARD 11(5), CHENNAI

PDF · subscribers
ITA 985/CHNY/2018Status: DisposedITAT Chennai01 November 2018AY 2013-143 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that for the purpose of computing fair market value under Section 50C, the guideline value on the date of the agreement for sale should be considered, not the date of the sale deed execution.

What were the facts?

The assessee, one of 14 co-owners, entered into an agreement for sale of property. The issue concerns the computation of capital gains under Section 50C, specifically whether the guideline value on the date of the agreement or the sale deed should be considered.

What were the issues?

The key issue is whether the guideline value on the date of the agreement for sale or the date of the sale deed execution is relevant for computing capital gains under Section 50C.

Which sections of the Income-tax Act were involved?

Section 50C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI

Before: SHRI N.R.S. GANESAN & SHRI S. JAYARAMAN

For Respondent: Shri AR.V. Sreenivasan, JCIT
Hearing: 20.08.2018Pronounced: 01.11.2018

आदेश /O R D E R

PER N.R.S. GANESAN, JUDICIAL MEMBER:

1.

This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) -13, Chennai, dated 05.01.2018 and pertains to assessment year 2013-14.

2.

Shri K. Balasubramanian, the Ld.counsel for the assessee, submitted that the assessee entered into an agreement for sale.

According to the Ld. counsel, there are 14 co-owners and the assessee is one among them. The issue arises for consideration is computation of capital gain under Section 50C of the Income-tax Act, 1961 (in short 'the Act'). According to the Ld. counsel, for the purpose of computation of capital gain under Section 50C of the Act, the guideline value fixed by the State Government for collecting the stamp duty on the date of agreement has to be considered. A similar view was taken by this Tribunal in one of the co-owner’s case in Shri M.C. Rajendran v. ITO in I.T.A. No.2022/Mds.2017 dated 01.11.2017.

3.

We heard Shri AR.V. Sreenivasan, the Ld. Departmental Representative also. The issue arises for consideration is that for determination of fair market value, whether guideline value on the date of agreement is to be taken into consideration or date of execution of sale deed? This issue was examined by this Tribunal in Upendra Maheshwari v. ITO in dated 05.01.2017. This Tribunal, in fact, found that the guideline value on the date of entering into agreement for sale has to be considered for the purpose of determination of fair market value under Section 50C of the Act. This decision of the Tribunal in Upendra Maheshwari (supra) was subsequently followed in M.C. Rajendran, one of the co-owners of the very same property. In view of the above, this Tribunal is of the considered opinion that the guideline value on the date of execution of agreement for sale has to be taken into consideration for the purpose of computing fair market value under Section 50C of the Act. Accordingly, the orders of both the authorities below are set aside and the Assessing Officer is directed to compute fair market value under Section 50C of the Act on the date of execution of agreement.

4.

In the result, the appeal filed by the assessee is allowed.

More judgments on Section 50C

All 3,223 judgments and leading authorities on Section 50C →

Recent GST High Court judgments

Search GST case law →