Section 50C of Income Tax Act, 1961—Capital Gain—In the instant case, assessee entered into a Development agreement on 04.02.2010, In lieu of such agreement, the assessee was allotted some flats. The assessee sold one flat on 9.11.2013 for a consideration of Rs. 9,10,000/- but the stamp duty authority has assessed the value for the purpose of stamp duty at Rs. 24,40,000/-. Therefore, the Assessing Officer worked out the short term capital gains on sale of flat at Rs. 17,08,750/-.

Held that—The findings of the CIT(A) that the flat has been sold on 19.11.2013 whereas the date of agreement for development is 4.2.2010 and thus, the period of holding is more than 36 months. Hence, he directed the AO to calculate long term capital gain on such transaction after giving cost inflation index to the assessee. The addition made by the AO is to be recalculated as long term capital gain. This findings of the CIT(A) is not controverted by ld A.R. of the assessee. Since, the CIT(A) has directed the AO to calculate the capital gains after giving cost inflation index to the assessee, we do not find any infirmity in the order of the CIT(A), which is hereby confirmed. Accordingly, grounds of appeal of the assessee are rejected.[SRI NALIN RANJAN, D-41, PHASE-V VERSUS ITO, WARD 1 (3) , 47, C.H. AREA, BISTUPUR, JAMSHEDPUR] [2019] 16 ITCD Online (44) [ITAT RANCHI]