Applicability of Section 50C

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janaki suresh B (Querist)

28 January 2011 Dear friends,
Please suggest me in the following:

one of my client was sold his land after getting clearance from Revenue Dept. in the year 2009-10 for sale consideration of Rs.10 lakhs where the stamp duty value is Rs.1 Crore.

however the land was under dispute with revenue department upto 31.03.2009. in 2008 he entered a formal agreement with Mr.X for sale the property by taking non refundable deposit of Rs.1 lakh by condition that if the dispute clears he should sold the property for the value of 10 lakh.

Whats my Question is whether we can take sale consideration for calculation of Capital gain purpose or else apply 50C.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)

28 January 2011 Land yet to be sold, only reciving the deposit is not a sale. In case sale is completed for less than Rs. 1 crore ( as per stamp valuation authority). sale consideration will be RS. 1 crore ( sec 50C).

Guest

Guest (Expert)

28 January 2011 However, in genuine cases, one can contest against the valuation u/s 50C following the lawful procedure.

janaki suresh B

janaki suresh B (Querist)

29 January 2011
Dear CA Shailesh Kumar Bhagat &C A. K. C. MOONDRA

thanking you very much

it is a genuine case. if 50C applies he could pay the more then what is he receive.

is there any decided case law "if the property in dispute 50C not apply" ?

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