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2013 (6) TMI 428 - ITAT DELHIUndervaluation of the sale consideration - whether CIT(A) erred in not adopting the circle rate at the rate of Rs.4500/- per sq. meter of land? - Held that:- There is no involvement or requirement of approaching the Stamp Duty Authority by the persons involved in the transaction as per law in this case. The lease in question has been granted by UP State Industrial Development Corp. Ltd. to the assessee vide lease agreement dated 29th day of October, 2007 for a period of 90 years. These lease hold rights were transferred to M/s. Sara Exports Ltd., Ghaziabad for a total consideration of Rs.3,25,00000/- only. Such transfer requires the approval of UPSIDCO. As relying on Carlton Hotels (P) Ltd. Vs ACIT [2008 (11) TMI 295 - ITAT LUCKNOW-A] & Atul G.Puranik vs. ITO [2011 (5) TMI 576 - ITAT, Mumbai] sec. 50C applies only to a capital asst, being land or building or both, it cannot be made applicable to lease rights in a land - in cases of transfer where agreement or sale deed is not registered and stamp duty is not paid, or capital gain is simply charged by deeming certain transactions as transfer as per other provisions of the act or some transactions of transfer are not registered or are not legally required to be registered under the Registration Act, S.50C cannot be put into operation. Also see Dy CIT vs. Tejender Singh [2012 (3) TMI 47 - ITAT, KOLKATA]. Thus on the issue of valuation, the working given by the CIT(A) could not be disputed by DR as CIT(A) held that the rate of Rs.4500/- per sq. feet is applicable for the standard period of 90 years and as what was transferred was lease rights for 54 years, the proportionate rate works out to Rs.2700/- and whereas the assessee has transferred these rights for an amount of Rs.3181/- and hence there is no undervaluation. Against revenue.
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