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2012 (9) TMI 682 - AT - Income TaxCapital Gain – AO compute sales consideration u/s 50C - Whether the AO was within his legal authority to import the figure of stamp duty valuation without actually referring to authority – Assessee enter into MOU regarding sale of property on 31/7/1998 – Registration of the property in year 2000 – AO applied the prevalent Stamp Duty rate though no such valuation was made by the local Stamp Duty authorities in respect of the said property - Assessee give possession of land after getting certification from CG u/s 269UL (3) – Held that:- As the AO transpires that the valuation as per stamp authority, which is prescribed Sec. 50C can be one of the parameters to arrive at the full value of the property that is to be transferred. The transfer of the land has to be considered on occurring in the year 2000, when the provisions of Sec. 50C were not in force. Decision in favour of assessee Capital Gain – Assessee has conveyed the property to buyer prior to 2001-02 along with 90% payment - Only the 10% final part payment which was made during the year along with the formal documentation – As per AO property was actually transferred in the instant year – Held that:- As the fact that the property in question was agreed to be sold and conveyance done even prior to F.Y 2001-02 is not disputed even in the assessment order. AO is using is the final payment and documentation and on that basis, the application of Sec. 50C. It is clear from the fact that except for the last installment everything was completed prior to 2001-02. Therefore, Sec. 50C were neither there nor could have been applied. Appeal decides in favour of assessee.
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