#Section 50C Income Tax Act

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 Lucknow rules that the Assessing Officer must refer valuation disputes to the Departmental Valuation Officer under Section 50C before making Long Term Capital Gains additions, even if the assessment deadline is imminent. The tribunal set aside the addition, reinforcing statutory compliance over procedural expediency in tax assessments.

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.