Held that the agreement was entered into much prior to the date of registration and the part payment had also duly been done at the time of agreement. Hence, the circle rate on the date of registration could not be applied. The rate as on the date of agreement should be taken for the purpose of computation under the first proviso to section 50C(1) introduced with effect from April 1, 2017, which is clarificatory and was to be applied. As regards cost of improvement no evidence was furnished hence not allowed as deduction. (AY.2015-16)
Akash Juneja v. ITO (2022)100 ITR 45 (SN) (Delhi)(Trib)
S. 50C : Capital gains-Full value of consideration-Stamp valuation-Sale deed shown less than value for stamp duty purposes-Agreement to sale was entered earlier-Circle rate as on date of agreement to be taken-Amendment is clarificatory and has retrospective effect-Cost of improvement-No document was provided-Not allowable as deduction [S. 45, 48]