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2008 (4) TMI 534 - AT - Income TaxComputation of capital gain u/s 48 - Determination of full value of consideration u/s 50C - ignoring the provisions of section 50C(1) and 50C(2) of the Act - capital gains from the property are required to be worked out by adopting the market value on which the stamp duty has been paid by the assessee or are to be worked out as per the valuation by the Valuation Cell of the Income-tax Department? - HELD THAT:- In the instant case, undisputedly the assessee contended before the AO that the actual consideration received by the assessee should be taken as the market value of the properties sold and not the amount paid as stamp duty for the purposes of transfer of the properties because the same was on a higher side in view of the existing details and descriptions given by the assessee before the AO. Further, the assessee in accordance with provisions of section 50C(2) of the Act requested the AO to refer the properties for valuation to the Valuation Cell of the Income -tax Department and adopt the same as full market value of the properties for working out the capital gains. AO has not done so, hence, in our opinion, the CIT(A) on considering the provisions of section 50C(2) of the Act has rightly directed the AO to refer the properties to the Valuation Cell of Income-tax Department for the purpose of valuation of the property and, thereafter, adopt the valuation for working out the capital gains. Since, the direction issued by the CIT(A) is in accordance with the provisions of section 50C of the Act, we find no illegality or infirmity in the well reasoned order of the CIT(A) and, accordingly, the same is upheld and ground of appeal taken by the Revenue is rejected. In the result, the appeal filed by the Revenue is dismissed.
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