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2011 (4) TMI 643 - AT - Income TaxComputation of capital gain - Under section 50C - Assessee has made a statement at the time of hearing that in respect of transfer of asset during the year under consideration, the value disclosed by the assessee was accepted by the stamp valuation authority and the assessee was not required to pay any extra stamp duty. Once a document is registered with the stamp duty authority, the value adopted/assessed by him for the purpose of payment of stamp duty in respect of such transfer has to be considered as value for the purpose of "(b)" - The Assessing Officer cannot substitute the value which the stamp duty authority ought to have adopted for the purpose of stamp duty - However, whether the value disclosed by the assessee was accepted by the stamp valuation authority, for the purpose of stamp duty needs verification at the end of the Assessing Officer - Therefore set aside the order of the authorities below with regard to the computation of the capital gain and restore the matter back to the file of Assessing Officer - The value adopted/assessed by the stamp valuation authority shall be considered for the purpose of computing capital gain as per section 50C of the IT Act. long-term capital loss - shares transaction - find that the assessee has given the copy of the transfer deed, share certificate as well as shareholders registered. These documents clearly show that the assessee has transferred 60,000 shares of "ACPL" to Smt. Poonamben Ashokbhai Patel on 18-10-2003 - The shares were sold at the rate of Rs. 5 per share. That Mukund K. Patel & Co, Chartered Accountant have valued the shares at Rs. 4.73 per share - The copy of the valuation is given at page No. 51A of the assessee's paper book - find that he valued the shares by adopting the market value of the asset as per the Schedule-III to Wealth Tax Act. No infirmity in the working of the auditor is pointed out - The assessee has sold the shares at a value slightly higher than the market value determined by the auditor - The assessee has also explained the circumstances in which he sold the shares - Decided in favour of assessee. Capital gains from the sale of land - As per the agreement to sell dated 3-4-1999, the assessee was given the possession of the property and the assessee had also made part payment of the consideration and has also issued the post-dated cheques for the remaining consideration - Therefore, the CIT(A) has rightly held that the asset would be deemed to be transferred to the assessee on 3-4-1999 - The assessee sold the land on 4-4-2003/2-5-2003. Therefore, the asset was long-term capital asset and capital gain arising therefrom would be long-term capital gain - Decided in favour of assessee.
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