Revenue loses appeal on Section 50C application when original agreement predates circle rate revision

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....The HC dismissed the Revenue's appeal regarding application of Section 50C for capital gains computation. The assessee had entered into a registered agreement to sell prior to 16.09.2004 with a payment schedule, followed by execution of the sale deed on 16.09.2004 when circle rates were revised upwards. The Revenue contended that the revised circle rate on the sale deed date should apply under Section 50C. The HC held that since the transaction value was commensurate with the circle rate at the material time of the original agreement, subsequent circle rate increases would not affect Section 50C application. The decision followed the precedent in Modipon Limited, confirming that the proviso to Section 50C does not apply retrospectively when the original transaction value matched prevailing circle rates.....