2026 (2) TMI 357

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....single issue, namely, whether addition of Rs.17,80,299/- is sustainable in her hand with the aid of Section 50C of the Income Tax Act, 1961 or not. 3. The brief facts of the case are that assessee has sold an Industrial Shed bearing No. 366, Industrial Area, Phase-2 Panchkula on 22.05.2012 for total consideration of Rs.4,80,00,000/-. The AO was of the view that Stamp Duty evaluation of this property was taken at Rs.4.97 Cr., hence, this value deserves to be deemed as full sale value u/s 50C of the Income Tax Act for computing Long Term Capital Gain. Accordingly, he made the addition of Rs.17,80,299/-. 4. Appeal to the ld. CIT (Appeals) did not bring any relief to the assessee. 5. Before us, ld. counsel for the assessee drew our att....

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....accruing as a result of the transfer by an assessee of a capital asset, being land or building, or both, is less than the value adopted or assessed by an authority of the State Government for the purpose of charging the Stamp Duty, then such valuation would be considered as a deemed full sale consideration contemplated in Section 48 of the Income Tax Act. In other words, the full value of consideration provided in Section 48 would be replaced by the amount on which Stamp Duty is being charged from the assessee. The only condition is that full value of sale consideration provided in Section 48 should be lesser than the Stamp Duty valuation for the purpose of charging the Stamp Duty. To this extent, there is no dispute in the present appeal. ....

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.... 2012 at the time of Agreement. Therefore, benefit of this proviso ought to have been given to the assessee. The appointed date for the purpose of considering Stamp Duty valuation is 12.03.2012 and not May, 2012 when Sale Deed was registered. The reason for introduction of this proviso was that if a valid agreement, being entered between the party and a vendor did not execute the Sale Deed, then vendee can file a suit for specific performance of the contract and persuade the vendor to execute the Sale Deed. It can be vice-versa, i.e. vendor can file a suit for specific performance of contract and persuade the vendee to purchase the property. In such situation, where Sale Deeds are being executed with the help of Court, then no money would b....