Section 50C stamp valuation on agreement date applies where advance consideration was paid through banking channels before the agreement.

For capital gains computation under section 50C(1), where the agreement to sell and registration date differ but fall in the same financial year, the stamp duty value on the agreement date may be adopted if part consideration was received before that date by account payee cheque. The Finance Act, 2016 proviso was treated as curative and clarificatory, so the amendment applied retrospectively. On that basis, adopting the stamp duty value on the date of the sale deed was unsustainable and the Revenue's challenge failed.

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Issues: Whether, for computation of capital gains under section 50C(1), the stamp valuation is to be taken as on the date of the agreement to sell where the agreement and registration dates differ and part consideration was received before the agreement date, and whether the proviso inserted by the Finance Act, 2016 is applicable retrospectively.

Analysis: The dates of agreement to sell and registration were different, but both fell within the same financial year. Part of the consideration had been received before the date of the agreement by account payee cheque, satisfying the statutory condition in the proviso to section 50C(1). The amendment introduced by the Finance Act, 2016 was treated as curative and clarificatory, following the coordinate Bench view that the stamp duty value on the date of agreement could be adopted where the statutory conditions were met.

Conclusion: The stamp valuation as on the date of agreement to sell was applicable, and the Revenue's challenge failed.

Final Conclusion: The addition made by adopting the stamp duty value on the date of sale deed was not sustainable, and the Revenue's appeal was dismissed.

Ratio Decidendi: The proviso to section 50C(1) permitting adoption of stamp valuation on the date of agreement applies where the agreement date and registration date differ and consideration is received through prescribed banking channels before the agreement; the amendment is curative and retrospective.

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