#Section 50C

The Kolkata ITAT ruled that the 10 % tolerance under Section 50C is retrospective, striking down the ₹9,94,312 addition for AY 2014-15 because the valuation gap was only 8.5 %. Taxpayers can therefore rely on the tolerance limit for past years, limiting exposure to Section 50C additions when the gap falls within the prescribed range.

ITAT Delhi rules that Section 50C cannot be mechanically applied to leasehold property transfers, mandating a District Valuation Officer report if valuation is disputed. The ruling clarifies procedural compliance for capital gains assessment on leasehold rights, impacting taxpayers and tax authorities.

ITAT Delhi holds that the 10% tolerance limit under Section 50C of the Income Tax Act applies retrospectively, deleting a Rs. 4.47 lakh addition for a minor valuation discrepancy in property sales. The ruling clarifies that valuation differences within the tolerance limit cannot justify additions to capital gains, impacting taxpayers contesting stamp duty-based assessments.

ITAT Jabalpur rules that for capital gains computation under Section 50C, the consideration is deemed received on the date the account payee cheque is deposited into the seller’s account, not on the date of sale deed execution. This clarifies the timing of income recognition for sellers who receive part payment via crossed cheques, impacting how indexed cost and capital gains are calculated in delayed property transactions.

The ITAT Ahmedabad has ruled that agricultural land situated beyond municipal limits cannot be treated as a capital asset under Section 2(14) of the Income-tax Act, rendering capital gains tax, Section 50C adjustments, and Section 69A cash addition inapplicable. This clarifies a critical exemption for rural landowners and invalidates revenue department tactics that misapply urban property valuation norms to agricultural sales.

ITAT Nagpur rules that land held as stock-in-trade in a land development business is not subject to capital gains tax under Section 50C, affirming business income treatment. The decision clarifies tax liability for developers and traders, ensuring consistent application of income tax provisions on trading assets.

ITAT Mumbai rules that for capital gains computation under Section 50C, the stamp duty valuation must be pegged to the date of the sale agreement-not registration-if the consideration was received prior to registration. This holding clarifies the timing for deeming provisions and prevents arbitrary additions to taxable income.

ITAT Mumbai rules that for capital gains computation under Section 50C, the stamp duty value as on the date of the Memorandum of Understanding (MOU) applies, not the registration date, if procedural delays cause the transfer. This holding impacts taxpayers facing delays in property transfers, ensuring fair valuation for tax purposes.