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2016 (2) TMI 1089 - ITAT AGRAComputation of capital gain with the aid of section 50C - Held that:- We are of the view that since the valuation of the property for the purpose of computation of capital gain is dependent upon the valuation adopted by ADM (Finance), Agra whose decision is under challenge before the Hon’ble Allahabad High Court. Therefore, the assessee and the ld. DR are justified in contending that such valuation could be adopted by the AO as per final decision of Hon’ble Allahabad High Court. The ld. CIT(A) also in the case of firm, M/s. Setwell Associates directed that ultimately, the value would be finally determined by the Hon’ble Allahabad High Court. Therefore, the capital gains in the hands of the partners including the assessee, can be computed on the sale consideration determined by the Stamp Valuation Authority subject to decision of Hon’ble Allahabad High Court. In principle, the applicability of provision of section 50C of the Act, in the facts and circumstances of the case, has not been disputed and such findings of the authorities below to that extent are confirmed. We set aside the orders of the authorities below and restore the issue to the file of AO with direction to re-compute the capital gain in the hands of the assessee as per sale valuation determined by the Stamp Valuation Authority as per directions of the Hon’ble Allahabad High Court. The AO shall recompute the capital gain by following the judgment of Hon’ble Allahabad High Court in this regard, as is submitted by the ld. Counsel for the assessee. We clarify that the re-computation of income on account of capital gain shall be made by the AO u/s. 153(3)(iii) of the IT Act as per final amount determined by the Hon’ble Allahabad High Court of sale value of property under consideration as per Stamp Valuation, as would be decided in the case of buyer.
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