Case Law Details
Dharamshibhai Sonani Vs. ACIT (ITAT Ahmedabad)
Provisos to Section 50C(1) of Income Tax Act, 1961 inserted by the Finance Act, 2016 w.e.f. 01/04/2017 are to be treated as curable in nature and would apply with “retrospective” effect from 01/04/2003 i.e. the date from which Section 50C was introduced.
In the above referred case, as pleaded by CA Manojkumar N. Makhania before Honarable Ahmedabad Tribunal, the Capital Gain Tax demand was raised by the Assessing officer for A.Y.2008-09 by taking stamp duty value on date of registration i.e. 24/04/2007 as full value of consideration under section 50C for calculating Capital Gain & not on the date of transfer i.e.29/06/2005 on which registered Satakhat for the consideration through account payee cheque along with possession receipt (Kabja Rashid) was made. Below mentioned facts were also put before the Tribunal.
- Registration of document was pending as the land was agriculture and buyer was a Pvt. Ltd., Company not eligible for the purpose of agriculture land.
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