If a Land and Building property is sold at a rate that is higher than the circle rate and the AO is still not accepting that, will Section 50C still apply ? If not then under which section can the Assesse claim his right
I believe that Section 50C, applies only if the sale value is below the circle rate as accepted by the Stamp Valuing Authority. Is this correct ?
Section 50C: No Adjustment Needed When Property Sells Above Circle Rate, AO Requires Evidence for Extra Valuation A query was raised regarding the applicability of Section 50C of the Income Tax Act when a property is sold above the circle rate, yet the Assessing Officer (AO) disputes this. The initial understanding was that Section 50C applies only if the sale value is below the circle rate. Replies clarified that Section 50C mandates using the stamp valuation authority's rate if the sale value is lower, but not if it exceeds this rate. The AO cannot add value without evidence of unaccounted consideration. The discussion highlighted the section's role as a deeming provision for valuations below the circle rate. (AI Summary)
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