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“Stamp valuation on the date of registration cannot be applied as the provision of S.50C was not in the statute when the agreement to sell for property was entered: Allahabad ITAT .
Hari Mohan Das Tandon (HUF) v. PCIT (2018) 169 ITD 639 (All) (Trib)
Gist of above case :
– Section on Capital gains
– – Full value of consideration & Stamp valuation
– – Agreement to sell for property was entered on September 1966 though registered on 29-11-2010
– stamp valuation on the date of registration cannot be applied as the provision of S.50C was not in the statute when the agreement to sell for property was entered . [ S.45, 48 ]
– Assessee entered in to an agreement to sell between assessee-HUF and purchaser in September, 1966, whereby, purchaser agreed to purchase property for Rs. 1 lakh and paid earnest money of Rs. 5000 but due to litigation in Civil Court, sale deed was executed later on 29-11-2010.
– AO applied the stamp duty valuation .
– Tribunal held that when the sale deed of September 1966 for calculating long-term capital gains would have to be considered and, thus, provisions of S. 50C which were not applicable in that year could not be invoked . ( AY. 2011-12)
Similar Pronouncements – Agreement to sell entered before Assessment Year 2014-15: Applicability of Section 43CA https://thetaxtalk.com/2018/09/24/agreement-to-sell-entered-before-assessment-year-2014-15-applicability-of-section-43ca/