Devindraben Rajeshbhai Sharma Vs ITO (ITAT Ahmedabad)
Assessee is an individual and didnot file ITR for AY 2012-13. During the year under consideration assessee sold an immovable property for a consideration of Rs.42,00,000/-. AO observed that the Stamp Valuation Authority has valued the property at a consideration of Rs.42,00,000/- and made addition of Rs.44,23,015/- by attracting the provisions of section 50C. Assessee has entered into an agreement to sale on 24/08/2010 which has been duly notorised on 25/08/2010 and paid an advance of Rs.1,lakh. Assessee has executed a sale deed on 25/11/2011 for sale of residential property of Rs.42,00,000/-. Revenue has invoked the provisions of section 50C considering the date of registration of the sale deed, i.e. on 25/11/2010.
CIT (A) confirmed the order passed by AO.
On appeal before ITAT it was submitted that that the case of assessee has been squarely covered under First Proviso of Section 50C of the Act and thus the sale consideration fixed on date of agreement has to be considered as full valuation of consideration towards transfer of property.
After considering the above submission ITAT allowed the appeal and held that the factum entering into an agreement on 25/08/2010 is not in
dispute, we hold that the value as on the date of entering into an agreement which was on 25/08/2010 be considered as sale value in accordance with law of provisions of Section 50C.
