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2012 (9) TMI 693 - AT - Income TaxAscertaining the fair market value of a capital asset for determining capital gain - revenue appeal against CIT(A) not considering the applicability of the provisions of section 55A by referring the valuation to Valuation Officer - Held that:- The appellant had shown sale value as a result of transfer at Rs.14,00,000/- whereas stamp authority has taken this value at Rs.13,83,600/- it means that assessee had shown more sale consideration in sale deed, thus, this case cannot be referred u/s 50C (2) to the DVO. The capital gain can be calculated under chapter – IV of computation of income from capital gain. Section 48 empowered to AO to calculate the capital gain. For calculation of capital gain full value of the transaction received or accruing as a result of the transfer of the capital assets following amount is to be deducted (i) expenditure incurred wholly and exclusive in connection with such transfer (ii) the cost of acquisition of the assets and the cost of any improvement there on. Further, indexation on cost of acquisition and cost of improvement is to be allowed. The various High Courts have held that full value of consideration u/s 48 cannot be construed fair market value as per Section 55A of the IT Act, thus A.O. was not justified in substituting the fair market value in place of full value of consideration - against revenue. Wrong computation of LTCG by adopting incorrect indexation - assessee had constructed additional floor at different times - Held that:- As the appellant had admitted the fact during the course of assessment proceeding that A.O. computed the capital gain on the basis of indexation on construction in different years at the time of assessment which was not challenged by the appellant before the CIT(A) & CIT(A) also had not given any findings in his appeal order on cost of improvement and indexation there on. Thus, this ground of Revenue appeal is dismissed - against revenue.
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