The Tax Publishers2020 TaxPub(DT) 4239 (Mad-HC) : (2020) 429 ITR 0097 : (2021) 277 TAXMAN 0243

INCOME TAX ACT, 1961

Section 50C(1)

Since amendment by insertion of proviso to section 50C(1) introduced with effect from 1-4-2017, provides that where date of agreement, fixing amount of consideration and date of registration for transfer of capital assets are not same, value adopted or assesssed or assessable by stamp valuation authority on date of agreement may be taken for purpose of computing full value of consideration for such transfer, seeks to relieve assessee from undue hardship, therefore, provision of same should be applied retrospectively.

Capital gains - Full value of consideration - Retrospective application amendment by insertion of proviso to section 50C(1) introduced with effect from 1-4-2017 -

Revenue challenged order of Tribunal holding that amendment to section 50C which was introduced with effect from 2017-18 prospectively was applicable retrospectively for the assessment year 2014-15. Revenue contended that language used in the proviso does not indicate that it was inserted as a clarification.Held: The proviso to section 50C(1) deals with cases where date of the agreement, fixing the amount of consideration and the date of registration for the transfer of the capital assets are not the same. Value adopted or assessed or assessable by the stamp valuation authority on the date of agreement may be taken for the purposes of computing full value of consideration for such transfer. Thus, an amendment by insertion of proviso seeks to relieve the assessee from undue hardship. Once a statutory amendment is being made to remove an undue hardship to the assessee or to remove an apparent incongruity, such an amendment has to be treated as effective from the date on which the law containing such an undue hardship or incongruity, was introduced.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-15



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