section 50C of the Income Tax

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CA SHYAMANAND (Querist)

10 December 2010 HI I am CA Shyamanand Chaudhary.My query is ,A sale deed has been executed in March 2008 but it has been registered with subrefistrar in May 2008. The case is under scrutiny.There is difference in Salconsideration & SVO valuation since sale deed was registered in May 2008.AO wants to apply sec 50C.Experts opinion requested

Sunali

Sunali (Expert)

10 December 2010 At present, the provisions of Sec 50C give no reference in case there is time gap between execution of sale deed and registration of the same with the State Authorities.

Hence, A.O.'s contention is correct.

Sunali

Sunali (Expert)

10 December 2010 However in case of

ITAT, AHMEDABAD BENCH ‘B’, AHMEDABAD
Kaushik Sureshbhai Reshamwlal

v.
ITO
ITA NO. 3374-3380/AHD/2009
April 30, 2010

it was held that

Where there is no evidence on record to show that the consideration over and above, what has been recorded in the sale deed/agreement has been made by the assessee and in the absence of the same, no addition can be made by estimating and substituting the market value.

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CA SHYAMANAND

CA SHYAMANAND (Querist)

13 December 2010 tHANX SUNALI. i M OF THE OPINION THAT STAMP DUTY RATES PREVAILING ON THE DATE OF EXECUTION OF SALE DEED IS RELEVANT ,IF THEREIS TIME GAP BETWEEN EXECUTION & REGISTRATION.

Sunali

Sunali (Expert)

13 December 2010 I agree that logically rates prevailing as on date of execution of Sale Deed should be relevant, however, in the court of law, it can be asserted that delay in registration of the sale deed is due to assessee's negligence.

However, going by the purposive construction of the respective section and in the light of above case law, our point is stronger.

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