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2018 (10) TMI 1980 - AT - Income TaxComputation of LTCG - invoking the provisions of the section 50C - DVO had made an addition on account of time gap, between 01.08.2007 to 31.05.2008, a increase in land rate on Rs. 5601/- Sq.ft. @ 11% per annum and consequently for 10 months increased the value by Rs. 514/- per Sq.ft. - HELD THAT:- A perusal of provisions of the section 55A(b)(i) of the Act clearly shows that variation of 15% is permitted in respect of valuation as disclosed by the assessee and as valued by the DVO. Here, the difference between the sale consideration as disclosed by the assessee and as arrived at by the DVO is only Rs. 7,14,110/-, which is less than 10%, clearly no addition is liable to be made and the long term capital gains is to be computed by applying the value as disclosed by the assessee. Consequently, the addition as made by the ld. AO and confirmed by the Ld.CIT(A), stands deleted. We are not going into estimating the net value of land under the pretext of probable increase in land value on account of time gap between guideline value date and the transaction date as the addition made by the ld. Assessing Officer and sustained by the Ld.CIT(A), is being deleted on account of variation which is less than 10% in view of the provisions of the section 55A(b)(i) of the Act. Appeal of assessee allowed.
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