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2015 (6) TMI 415 - AT - Income TaxAddition on account of long term capital gain - whether section 50C of the Act would be invocable? - Held that:- Index-II of the registered agreement reflects two values, one which is the value assessed by the stamp valuation authority for the purpose of payment of stamp duty, and the value on which the stamp duty has been actually paid, with the latter being higher. In such a situation, if the latter value is to be adopted as the deemed value for section 50C of the Act, it triggers the provisions of sub-section (2), inasmuch as the said value clearly exceeds the fair market value of the property adopted for the payment of stamp duty, inasmuch as the stamp valuation authority himself has stated the market value of the property at ₹ 4,37,20,550/- which is lower. Therefore, in such a situation, in our view, it was in the fitness of things that in order to justify invoking of section 50C of the Act, the Assessing Officer was required to compare the consideration stated in the agreement at ₹ 4,37,20,550/- with the value assessed for the payment of stamp duty, i.e. at ₹ 4,37,20,550/- as indicated in Index-II and not the amount of ₹ 4,80,00,000/-, on which stamp duty has been paid. Considered in this light, we therefore find that the addition of ₹ 42,79,000/- is not justified on the strength of invoking of section 50C of the Act. We accordingly set-aside the order of the CIT(A) and the Assessing Officer is directed to the delete the impugned addition of ₹ 42,79,000/-. Decided in favour of assessee.
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