Case Law Details
It was also argued by learned AR that the unregistered property was sold on 07/08/2006 which means, since the unregistered property was sold before the clarification was issued under Circular No. 5/2010 dated 03/06/2010 where it clearly states that the scope of the provisions do not include transactions which are not registered with stamp duty valuation authority, and executed through agreement to sell or power of attorney and hence the provisions of Section 50C will not be attracted since the sale is before 01/10/2009, which is the date on which the circular becomes applicable.
In view of the decision of Co-ordinate Bench in case of Rahul Construction (supra) since the difference between the sale consideration of the property shown by the assessee and the FMV determined by the DVO under Section 50C(2) being less than 10 per cent, AO was not justified in substituting the value determined by the DVO for the sale consideration disclosed by the assessee.
Relevant Extract of the Judgment
10. We have considered rival contentions and carefully gone through the orders of the authorities below. We had also carefully gone through the Circular No. 5/2010 dated 03/06/2010 as cited by learned AR. We had also deliberated on the judicial pronouncements cited by learned AR during the course of hearing before us in the context of factual matrix of the instant case. From the record we found that assessee had sold certain flats during the year under consideration and also executed sale agreements for the same. The sale agreements were not registered, therefore, it was not possible to determine the stamp duty value as per provisions of Section 50C. However, the AO referred the matter to the DVO, who valued the four flats at Rs.2,07,51,130/- against declared sale consideration of Rs. 1,96,,60,000/- by the assessee. Thus, there was a difference of Rs.10,91,130/- which amounts to approximately 5.5% of the amount actually declared as the sale consideration.
Circular No. 5/2010 dated 03/06/2010 reads as under:-
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