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2014 (3) TMI 1114 - AT - Income TaxInvoking of section 50C in relation to the two properties sold by the assessee through Public auction - Held that:- Invoking section 50C for the purposes of substituting the full value of consideration in order to compute the capital gain would fail since there would not be any differential between the stated consideration and the Value to be considered by the stamp valuation authority of the state government for the payment of stamp duty. However, it has been pointed out by the Revenue that the buyers of the properties have paid stamp duty at the value determined on the basis of rates prescribed in the ready reckenor, which are higher than stated consideration. In our considered opinion, the aforesaid factum would not make any difference to the rationale of invoking section 50C of the Act, which has to be decided on the basis of the prevailing legal position, and not on the basis of the position taken by a party. Pertinently, the purchaser of the properties are liable to bear expenses of stamp duty and it was not within the domain of the assessee and therefore assessee cannot be put to a jeopardy of invoking of section 50C of the Act merely because of the fault of the buyers of the properties. The CIT(A) erred in affirming the invoking of section 50C of the Act in relation to the two properties sold by the assessee through Public auction. Accordingly, we set-aside the order of the CIT(A) and direct the Assessing Officer to allow appropriate relief to the assessee as per law. Enhanced compensation paid to the owner of land as a part of cost of acquisition for the purposes of computation of capital gains - Held that:- The claim of the assessee in question has a bearing on the ultimate determination of tax liability. Admittedly, an appellate authority has wide powers to admit a fresh claim which was not before the Assessing Officer. The legal position in this regard is quite well-settled and we may refer to the judgements of the Hon’ble Supreme Court in the case of National Thermal Power Co. Ltd. vs. Cit [1996 (12) TMI 7 - SUPREME Court] and Jute Corporation of India Ltd. vs. CIT (1990 (9) TMI 6 - SUPREME Court) in this regard. In the present case, the additional ground entertained by the CIT(A) involved a point of law and it related to assessability of capital gain, which was subject-matter of consideration before him. It is also evident that the claim was based on an order of a judicial body, namely, District Judge, Jalgaon rendered with reference to section 18 of the Land Acquisition of Act, 1894. The claim of the assessee is arising from operation of law and therefore, in our view, the CIT(A) made no mistake in admitting such a claim for the purposes of computing assessee’s correct tax liability. Accordingly, we hereby affirm the action of the CIT(A) in this regard and the Revenue has to fail.
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