Section 50C Proviso Not Retrospective for AY 2013-14: Ranchi ITAT

Prakash Chandra Mukherjee Vs ITO (ITAT Ranchi)

Agreement-Date Stamp Value Relief under Section 50C Is Not Retrospective: Ranchi ITAT Upholds ₹58.90 Lakh Addition

The Ranchi Bench of the Income Tax Appellate Tribunal has held that the proviso to Section 50C(1), permitting adoption of the stamp-duty value prevailing on the date of the agreement instead of the date of registration, cannot be applied retrospectively to Assessment Year 2013-14. The Tribunal rejected the assessee’s contention that the amendment introduced by the Finance Act, 2016 was curative and remedial and should therefore apply to earlier years. The addition of ₹58.90 lakh, representing the difference between the actual consideration and the stamp-duty valuation prevailing on the date of registration, was consequently upheld. The decision was rendered in Prakash Chandra Mukherjee v. ITO, Ward-2(1), Jamshedpur, ITA No. 317/Ran/2025, Assessment Year 2013-14, order dated 10 September 2026.

Facts of the case

The assessee earned income from the sale of building materials, house property and capital gains. The Assessing Officer received information that the assessee had transferred a plot of land to M/s Bravo Sponge Iron Limited for an actual consideration of ₹50 lakh, whereas the stamp-duty valuation of the property was ₹1,08,90,000. Based upon this information, the assessment was reopened under Section 147, and notice under Section 148 was issued on 15 February 2018. The Assessing Officer invoked Section 50C and adopted the stamp-duty value of ₹1.089 crore as the deemed sale consideration. The difference of ₹58.90 lakh was added as short-term capital gain. The total income, originally returned at ₹6,04,620, was accordingly assessed at ₹64,94,620.