Capital Gains — Immovable Property — S. 50C — Sale of immovable property at or above Stamp Duty Value (SDV) — Subsequent increase in SDV — SDV at the time of agreement to sell has to be considered — Subsequent increase in SDV at the time of execution of Sale Deed not to be considered — Proviso to section 50C applicable retrospectively.

41. Pr.CIT vs. Thompson Press (India) Ltd.

(2025) 176 taxmann.com 237 (Del)

A. Y. 2014-15: Date of order 02/07/2025

S. 50C of ITA 1961

Capital Gains — Immovable Property — S. 50C — Sale of immovable property at or above Stamp Duty Value (SDV) — Subsequent increase in SDV — SDV at the time of agreement to sell has to be considered — Subsequent increase in SDV at the time of execution of Sale Deed not to be considered — Proviso to section 50C applicable retrospectively.

One LMIL, sold land to one MIPL which belonged to the Maccons Group. The agreement to sell was entered amongst the parties on 30/05/2013 and on the same day stamp duty of ₹72 lakhs was paid by the purchaser, that is, MIPL. The said land admeasuring about 20,000 square meters was sold by LMIL at the rate of ₹18,000 per square meter viz. for total consideration of ₹36 crores. Thereafter, LMIL merged into the assessee company.

Subsequently, a search was conducted at the residential and business premises of the Maccons Group on 27/11/2014. During search, sale deed dated 11/10/2013 executed by LMIL was found. The Stamp Duty Value of the property on the date of exec