PCIT Vs Bellandur Chikkagurappa Jayaramareddy (Karnataka High Court)
The Karnataka High Court addressed a dispute involving the determination of land sale value for income tax purposes under Section 50C of the Income Tax Act. The Revenue challenged a Tribunal’s decision to grant relief to the assessee by using the date of the Memorandum of Understanding (MOU) instead of the registration date for calculating the capital gains. The Tribunal had reversed the Commissioner’s decision, citing that the relevant provisions allowed for the consideration to be based on the date of the MOU, despite it being an unregistered document. The Revenue contended that the MOU did not create title and that the Tribunal’s order ignored the materials on record. The High Court supported the Tribunal’s view, affirming that the date of the agreement should be used for computing the sale value, in line with the provisions of Section 50C. The appeal was dismissed, confirming the Tribunal’s order and upholding the practice of using the agreement date for tax calculations.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
This appeal by the Revenue seeks to call in question the Tribunal’s Order dated 05.01.2022 concerning the Assessment Year 2014-15 whereby, the Assessee’s Appeal in ITA No.1322/Bang/2019 came to be allowed and Assessee has been granted to relief by reversing the order of Commissioner (Appeals).
