The case pertains to the applicability of Section 50C of the...

The case pertains to the applicability of Section 50C of the Income Tax Act in determining the full value of consideration for computing capital gains in the hands of the purchaser (assessee). The key points are: The Assessing Officer (AO) invoked Section 50C to deem the stamp duty valuation as the full value of consideration, treating the difference as unexplained investment in the hands of the purchaser. However, Section 50C is applicable to the seller, not the purchaser. Section 56(2)(vii), introduced in 2014, provides for deeming the stamp duty valuation as the purchase cost for the buyer, with the difference treated as a deemed gift. Since the assessment year was prior to 2014, this provision was not applicable. The Tribunal held that the AO's addition was unsustainable and contrary to law, observing a vindictive approach without understanding the issue. The assessee's appeal was allowed.