Case Law Details
Brief of the case:
ITAT Held in ITO vs Tara Chand Jain that the amendment in sec 50C which inculcates word “assessable” would have prospective effect from the date of its insertion i.e from 01-10-2009 and would not have retrospective effect on the sale of property before 01-10-2009 so in the present case the assessee had sold the property rights in 2007 so sec 50C would not be applicable in the above case because limited rights could not be equated with the ownership of the land or building or both. The income tax cleary recognized the distinction between the land or building or any right in land under sec 50C of the act. Thus the act had given separate treatment to land, building and rights in the land.
Moreover as the assessee was only having limited rights in the land but the same was owned by state government. As sec 50C was applicable on the sale of land or building or both, so sec 50 would not be applicable in the above present case.
Facts of the case:
The assessee had sold a land through agreement to sale for Rs 74,91,000/- on 18-04-2007 In which assessee was having 50% share The land was not duly registered and no stamp duty was paid on the transaction. Therefore the ld Assessing Officer referred this property to Sub-Registrar, Sanganer-I, Jaipur for its valuation as on the date of transfer, for charging stamp duty on the above transaction. The Sub-Registrar, Sanganer-I valued the property at Rs. 6,97,66,620/- as on 18/04/2007 i.e. the date of transfer, on the basis of DLC rate, for the purpose of charging stamp duty on the above transaction. The ld Assessing Officer gave reasonable opportunity of being heard on this valuation made by the Sub-Registrar, Sanganer-I, Jaipur 5 ITA No. 566 & 578/JP/2012 ITO Vs Tara Chand Jain and proposed to adopt fair value of property U/s 50C at Rs. 6,97,66,620/- and also deduction U/s 54F was also proposed recomputed accordingly. The assessee filed objection before the Assessing Officer, which was forwarded to the Sub-Registrar for his comments. The Sub-Registrar again rejected the assessee’s objection and valued the property at Rs. 6,97,66,420/-. Assessee field an appeal because he was of the view that sec 50C would not be applicable as the property was sold on of 18-04-2007 but sec 50C came into force on 01-10-2009 so effect of sec 50C would be prospectively not retrospectively moreover assesse was not the owner of the land he was just having rights in the land.
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