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2015 (6) TMI 1018 - AT - Income TaxComputation of capital gain in respect of sale of plot of land - reference under section 55A to the DVO - Held that:- It is not in dispute that the said plot of land was sold by the assessee by a registered deed at actual sale consideration of ₹ 8,04,20,506/-. Further, it is also not in dispute that the jantri value of the same for the purpose of stamp duty was determined by the competent authority at ₹ 5,07,60,000/-. Thus, the actual sale value being more than stamp duty, the assessee computed the capital gains by taking actual sale value as the consideration of the transfer. On the above facts, neither section 50C nor section 55A of the Act empowers the AO to substitute the actual sale consideration by estimating fair market value determined by the DVO. As per section 50C a reference to DVO can be made by the AO when the stamp duty value is more than the actual sale consideration, and the assessee objects for adoption of stamp duty value as consideration for computation of capital gain. The above situation is not present in the instant case. Further, a reference under section 55A to the DVO can be made when it is necessary to determine the fair market value of an asset. In the instant case, as the actual sale consideration was determined, and the same being more than the stamp duty value, question of determining of fair market value does not arise. - Decided against revenue.
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