TaxTMI 
TaxTMI 
2026 (3) TMI 1120
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....appeal. The first issue is what should be the sale consideration which the assessee is deemed to have received on sale of immovable property, keeping in view the provisions of section 50C of the Income Tax Act, 1961 ('the Act' for short) and the second issue is regarding assessee's eligibility to claim deduction u/s. 54 of the Act. 3. Briefly the facts are, the assessee is a resident individual. For the assessment year under dispute, the assessee had filed his return of income on 11.07.2012, declaring income of Rs. 93,900/-. The assessee in his capacity as a Member Legislative Counsel (MLC) was allotted an immovable property, being Flat No.A-3103, 31st Floor, A Tower, Shubhada CHS, Worli, Mumbai, having built up area of 1001.00 sq. ft. a....
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....ifying the documentary evidences found that as per the registered transfer deed, the stamp duty authority has determined the value of the property at Rs. 2,37,93,000/-. Thus, referring to the provisions of section 50C of the Act, he called upon the assessee to explain why the value determined by the Stamp Valuation Authority should not be treated as deemed sale consideration for computing capital gain. Though the assessee objected to such view of the A.O. by submitting that in terms with the first proviso to section 50C(1) of the Act, the stamp duty value prevailing on the date of MOU should be taken for computing capital gain, however, the A.O. was not convinced. Ultimately, he held that since as per the registered transfer deed, the prope....
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....al gain in the year under consideration, based on the registered transfer deed executed in the year under consideration, assessee is entitled to claim deduction u/s. 54 of the Act, as the investment in the new property was made within the stipulated period from the date of execution of registered transfer deed. In support of such contention, ld. Counsel relied upon the following decisions: 1. ITO vs. K. C. Gopalan [1999] 107 Taxman 591 (Kerala) 2. Mrs. Prema P. Shah vs. ITO [2006] 100 ITD 60 8. Per contra, the ld. Departmental Representation submitted that since the MOU was not registered, the valuation as on the date of MOU cannot be considered. As regards the claim of deduction u/s. 54 of the Act, ld. DR strongly reli....
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....vour of the purchaser. The first proviso to section 50C(1) of the Act reads as under: "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." 10. Though, proviso was introduced by Finance Act, 2016 w.e.f. 01.04.2017, however, the proviso being a beneficial piece of legislation introduced to mitigate genuine hardship faced by assessee's on account of delay in registration of transfer deed, would apply retrospectively. This is the c....