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IT Dept can Adopt Full Value of Consideration even in case of Unregistered Transfers

Justices Akil Khureshi and Biren Vaishnav, COMMISSIONER OF INCOME Vs M/S.AKASH ASSOCIATION  held that section 50C of the Income Tax Act is applicable to a case where even a case where the document evidencing transfer of the capital asset has not been presented for registration Section 50C of the Income Tax Act provides for special provision for full value of consideration in certain cases.

It was contended on behalf of the Revenue that the transfer of the land, in the instant case was took place under a Banakhat (agreement for sale) which was not registered and that therefore there was no occasion for the Stamp Valuation Authority to assess the value of the land for the purpose of payment of stamp duty upon its transfer.

Overruling the department’s contention, the bench noted that it ignores the plain language used in subsection (1) of section 50C which provides for the adoption of the valuation of the Stamp Valuation Authority for the purpose of payment of stamp duty not only when it is adopted or assessed but where it is assessable by such authority.

“The expressions ‘adopted’ or ‘assessed’ or ‘assessable’ would include even a case where the document evidencing transfer of the capital asset has not been presented for registration. The expression ‘assessable’ would permit the Revenue authorities to apply what is popularly referred to as Jantri rates with respect to the land in question for the purpose of section 48 of the Income Tax Act with aid of deeming fiction contained in subsection (1) of section 50C of the Act,” the bench said.

Aritcle referred: http://www.taxscan.in/dept-can-adopt-full-value-consideration-even-case-unregistered-transfers-gujarat-hc/11572/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+Taxscan+%28Top+Stories+%E2%80%93+Taxscan+%7C+Simplifying+Tax+Laws%29

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