2022 (10) TMI 492

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....) Making disallowance of carry forward Long Term Capital Loss of Rs.82,96,820/- by making an additions U/s. 50C of the Income Tax Act, 1961 on account of difference in the circle rate between the date of registration of Agreement to Sell (16.07.2012) and date on which sale deed was registered (13.05.2013) and not including stamp duty on purchase in cost and not adding transfer charges and other expenses on Purchase/ Sale. (ii) Adding a sum of Rs.8296820/- as Income from Other Sources. (iii) Stating in Para7.3 of the CIT (A) order that "I find that the Assessing Officer has reduced the loss from sale of the property." This statement is incorrect and contrary to the facts. (iv) Not appreciating the intention of bringing the beneficia....

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....eement fixing the amount of consideration has been inserted by the Finance Act, 2016, w.e.f. 01.04.2017. Provided that where the date of the agreement fixing the amount of consideration and the date of registration for the transfer of the capital asset are not the same, the value adopted or assessed or assessable by the stamp valuation authority on the date of agreement may be taken for the purposes of computing full value of consideration for such transfer. 7.3 It may be seen that the insertion of the above proviso is only w.e.f. 01.04.2017, meaning thereby the Assessee shall not get the benefit of its agreement fixing the amount of consideration in previous financial year, that was 2012-13. Therefore, the provisions of 50C of the IT....

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....he decision of Hon'ble Supreme Court was prior also wherein it was held that for the purpose of transfer of property/sale of property for the purposes of capital gains, agreement to sell with part payment thereof is sufficient compliance. In this case as already noted, out of consideration of Rs.1.6 crores, assessee had already paid a substantial sum of Rs.1.10 crore at that time. Hence, in our considered opinion, the authorities below action to take circle rate of the year of registration is not sustainable and accordingly set aside the same. 6. Another ground in this ground is that assessee has claimed certain expenses relating to registration expenses as cost of improvement. AO had not allowed the same on the ground that no details were....