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2012 (2) TMI 520 - AT - Income TaxSale value in respect of transfer of tenancy rights for the purpose of computation of capital gain - stamp duty value adoption - sec 50C applicability - Held that:- Assessee had shown value of ₹ 55.00 lacs in respect of transfer of tenancy rights relating to about 1800 sq.ft. area of factory godown. Capital gain has to be computed on the basis of sale consideration received or accruing to the assessee. Even if the document was not registered, the capital gain has to be computed on the basis of the sale consideration shown and received by the assessee unless there was material to show that the sale consideration was understated. Market value cannot be substituted for sale consideration while computing capital gain. Only for the limited purpose of computation of capital gain in respect of sale of land and building, stamp duty value has to be substituted for sale consideration in view of specific provisions of section 50C. Therefore, provisions of section 50C can not be applied in case of transfer of tenancy rights in respect of land or building or both. In this case, admittedly the document was not registered and no stamp duty had been paid. Therefore stamp duty value can not be adopted for the purpose of computation of capital gain and the value shown in the agreement has to be adopted as there is no material to show that the assessee had understated the sale consideration. We, therefore, see no infirmity in the order of CIT(A) and the same is, therefore, upheld.
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