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2016 (8) TMI 55 - AT - Income TaxCapital gain computation - determination by the stamp duty valuation authorities for stamp duty purpose - reference matter to DVO - Held that:- In case the assessee disputes the value as adopted by the stamp duty valuation authorities for stamp duty purposes, the AO is bound to refer the matter to DVO for determining the fair market value of the property and in case DVO valued the fair market value of the property at a value higher than stamp duty value adopted by Stamp duty valuation authorities, then the value adopted for stamp duty by stamp duty valuation authorities shall be taken as full value of consideration for computing capital gains. In our considered view, the value of ₹ 1,77,12,000/- as determined by the stamp duty valuation authorities for stamp duty purposes shall be adopted as full value of consideration for the purposes of Section 48 of the Act for computing long term capital gains in the hands of the assessee due to deeming fiction of Section 50C of the Act, instead of the value of the land of ₹ 2,09,28,000/- as determined by the DVO, while on the other hand the actual sale consideration is ₹ 72,00,000/- . The assessee’s share in the land is 13.5417% and hence full value of consideration will work out to ₹ 23,98,500/- which for the purposes of Section 48 of the Act shall be adopted as full value of consideration of sale of land as per provisions of Section 50C of the Act for computing long term capital gains chargeable to tax.
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