Smt. Rajeswari Iyer Vs ITO (ITAT Chennai)
Chennai ITAT Grants Retrospective Benefit of First Proviso to Section 50C; Oral Agreement with Advance by Cheque Valid to Adopt Stamp Duty Value as on Agreement Date: ITAT Chennai
The Chennai ITAT partly allowed the assessee’s appeals for assessment years 2013-14 and 2014-15. The Tribunal held that the benefit of the provisos to Section 50C was available as they were retrospective in operation, relying on the Madras High Court decision in CIT v. Vummudi Amarendran. It found that oral agreements entered into by the assessee’s father before revision of the guideline value on 01.04.2012, coupled with part receipt of sale consideration through banking channels before that date, satisfied the conditions of the provisos. The Tribunal observed that the sale consideration for the Varadharajapuram and Kundrathur properties exceeded the guideline value prevailing on the date of the oral agreements and held that Section 50C would not apply. Accordingly, it allowed the grounds relating to the Section 50C additions for both assessment years. The grounds relating to cost inflation index and brokerage were dismissed as not pressed since the CIT(A) had already remanded those issues to the Assessing Officer for verification. On the addition of ₹83,16,000 treated as income from other sources, the Tribunal remitted the matter to the Assessing Officer to verify whether the assessee’s share was ₹41,58,000 as claimed.
