Income Tax : The article explains how violating the twin conditions under Section 50C(2) can block valuation relief and trigger taxation on hig...
Income Tax : The ITAT held that an assessment completed before receiving the DVO report under section 50C(2) is invalid. All additions and disa...
Income Tax : ITAT Bangalore held that capital gains from land gifted to spouse are taxable in the husband’s hands under Section 64(1)(iv), no...
Income Tax : Learn how Section 50C impacts genuine property sales. Explore case laws, strategies, and defenses to handle unfair tax additions d...
Income Tax : Section 50C: For property sales, if the sale price is lower than the value assessed by Stamp Valuation Authority, that value is co...
Income Tax : Bombay Chartered Accountants' Society has made a Representation on 'Suggestions for Amendments in the Income Tax Act', on 24th May...
Income Tax : In relation to computing capital gains tax liability on transfer of land or building, amendment made via the Finance Act, 2016 giv...
Income Tax : Rationalisation Of Section 50c To Provide Relief Where Sale Consideration Fixed Under Agreement To Sell- Section 50C makes a spec...
Income Tax : The case examined whether minor valuation differences can trigger taxation under Section 56(2)(x). ITAT held that differences with...
Income Tax : The Tribunal held that where registration is delayed, the stamp duty value on the agreement date must be considered. The ruling ap...
Income Tax : The dispute involved incorrect invocation of valuation provisions by the AO. The Tribunal ruled that using Section 142A instead of...
Income Tax : The Tribunal found that capital gains were computed without considering the DVO valuation report. It held that ignoring such evide...
Income Tax : ITAT held that vacant unsold flats attract tax on notional rent under house property. The key takeaway is that ownership triggers ...
Income Tax : Notification No. 8/2020-Income-Tax- CBDT has notified Other electronic modes by inserting New Income TAx Rule 6ABBA. It also amend...
ITAT Bangalore ruled that first proviso to Section 50C(1) is curative and retrospective, applying from A.Y. 2003-04. This allows taxpayer to compute capital gains based on stamp duty value prevailing on earlier MOU date (agreement date) instead of later, higher registration value, since part consideration was paid before registration.
The issue was whether, for Section 50C purposes, the stamp duty value should be taken on the date of the agreement (MOU) or the date of registration. The Karnataka High Court ruled the date of the agreement must be adopted when part of the consideration was paid via banking channel. Key Takeaway: The second proviso to Section 50C(1) is mandatory and allows the use of the lower stamp value prevailing on the agreement date if banking payment is made before registration.
ITAT allowed taxpayer’s appeal, holding AO erred by applying Section 50C to cash compensation received for extinguishment of a right to receive flats instead of an actual transfer of immovable property. The order directs deletion of confirmed LTCG addition of Rs. 80.32 lakhs.
ITAT Chennai held that when sales are accepted and supported by records, entire purchases cannot be treated as bogus merely because suppliers were untraceable. Addition restricted to 12.5% as profit element.
Addition to the differential margin between the Gross Profit (GP) declared by the assessee and the benchmark rate of 10% adopted as the industry average for rice trading was restricted affirming that a full disallowance of such purchases was not justified when the corresponding sales were accepted by the Revenue authorities.
ITAT ruled that 5% tolerance for difference in stamp duty value and sale consideration applies retrospectively. This allowed assessee’s appeal against an addition under Section 56(2)(x).
The ITAT Delhi confirmed the addition of Rs.25.35 lakh as unexplained investment for a house purchase under Section 69, ruling that the assessee failed to discharge the initial onus to prove the creditworthiness and genuineness of loans allegedly received from his mother and sister. The lenders lacked sufficient bank balances, and documentation was incomplete.
ITAT Delhi ruled that Section 50C, which allows revaluing property based on circle rates, applies only to the seller in a transfer, not the buyer in a slump sale governed by Section 50B. The Tribunal held that goodwill is depreciable, but its value must be verified by the Departmental Valuation Officer (DVO).
The ITAT granted complete relief, holding that the date of allotment of the new industrial plot, not the date of registration, is the relevant date of purchase for the Section 54G capital gains exemption. Furthermore, the court confirmed that the transfer of industrial property from Delhi (Urban) to Ghaziabad (Non-Urban) qualified for the full shifting exemption.
The tribunal remanded the appeal to the Commissioner after the penalty for furnishing inaccurate particulars was affirmed. The assessee is now granted a fresh opportunity to submit documents and respond, ensuring substantial justice.
