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2010 (7) TMI 1034 - ITAT VISAKHAPATNAMComputation of capital gains - adoption of a higher value by invoking the provisions of section 50C on the date of sale agreement - AO adopted the value determined by the SRO - HELD THAT:- There is no dispute that the assessees herein entered into sale agreements on 04-6-2005 and the sale value fixed on that date was equivalent to the SRO rates fixed for stamp duty purposes. The conveyance deed was registered on 25.8.2005, i.e. within a period of three months. Though the SRO rates had been raised upwards on that date, the assessees herein have fulfilled a contractual obligation, which they are bound by law to carry out. Since the process of sale has been initiated from the date of sale agreement, the applicability of provisions of section 50C should be looked at only on the date of sale agreement. In the instant cases, the question of adoption of a higher value by invoking the provisions of section 50C on the date of sale agreement does not arise as the sale value fixed by the assessees was equivalent to the SRO value for stamp duty purposes. Therefore, we set aside the orders passed by CIT(A) in the hands of these two assessees and direct the AO to delete the addition made in the computation of capital gains in the hands of both the assessees.
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