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2018 (11) TMI 1836 - AT - Income TaxCapital Gain in respect of sale of agricultural land - Addition invoking provision of section 50C - difference between the sale value declared by the assessee and the sale value determined by the Assessing Officer by 13% - approval of tolerance limit of 15% variation in estimating sale value - DR submitted that in proceedings before the First Appellate Authority the assessee had offered addition over and above 10% of the difference between the sale value disclosed by the assessee and Government valuation - contentions of the assessee is that where the difference in the sale value declared by the assessee and value determined by the Assessing Officer is less than 15% no addition is warranted - HELD THAT:- We find in the present case there is difference of 13% in the value declared by the assessee and as determined by the Assessing Officer. The Co-ordinate Bench of the Tribunal in the case of Rahul Constructions Vs. Deputy Commissioner of Income Tax [2012 (1) TMI 229 - ITAT PUNE] has taken a tolerance limit of difference in two valuations as 10%. Similar view has been taken in the case of Honest Group of Hotels (P) Ltd. Vs. Commissioner of Income Tax [2001 (11) TMI 1016 - HIGH COURT OF JAMMU & KASHMIR]. The assessee before the Commissioner of Income Tax (Appeals) had voluntarily offered for the addition of sale consideration over and above the difference of 10%. Taking into consideration entirety of facts and the decisions cited by the assessee, to meet the ends of justice the benefit of 10% difference of sale value is allowed. The sale consideration over and above 10% is added for the purpose of determining Capital Gains. The appeal of assessee is partly allowed, in the terms aforesaid.
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