ITO Vs Meelendra Deependra Singh (ITAT Mumbai)
Material Facts
The assessee, an individual deriving salary income, inherited two plots of land at Bhandup East, Mumbai. A development agreement was executed on 19 August 2006 for consideration of ₹2,57,77,000 and ₹8,70,000 respectively, with an advance of ₹1,00,000 received at the time of the agreement. Possession was not handed over to the developer. A conveyance deed was subsequently executed on 30 December 2010, and the assessee computed long-term capital gains based on the consideration agreed under the 2006 development agreement.
Procedural History
During assessment under Section 143(3), the Assessing Officer held that Section 50C required adoption of the stamp duty value prevailing on the date of the conveyance deed rather than the agreement date, resulting in assessment of substantially higher capital gains. The CIT(A), after obtaining a remand report and considering the District Valuation Officer’s valuation as on the agreement date, held that the amendment to Section 50C introduced by the Finance Act, 2016 was retrospective and directed the Assessing Officer to recompute the capital gains using the stamp duty value as on the agreement date. The Revenue appealed before the Tribunal.
Legal Issues
The Tribunal considered:
- Whether the amendment to Section 50C introduced with effect from Assessment Year 2017-18 applies retrospectively to Assessment Year 2010-11.
- Whether, where the agreement date and registration date differ, the stamp duty value on the agreement date should be adopted for computing capital gains.
Relevant Statutory Provisions
