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2017 (3) TMI 80 - AT - Income TaxComputation of capital gain - Applicability of provisions of section 50C - Held that:- The provisions of section 50C provides that where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed [or assessable] by any authority of a State Government (hereafter in this section referred to as the "stamp valuation authority") for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed [or assessable] shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer. In view of this, the circle rates applicable on the date of the sale of property, shall be applied for working out of capital gain. Therefore we set aside the impugned orders of the lower authorities back to the file of the Ld. assessing officer to determine whether on the date of sale of the property, circle rates were in existence or not. If the circle rates are existing on that particular date, then the assessing officer must refer the matter to the valuation officer for valuation of the property at fair market value in terms of the provisions of section 50 C in terms of subsection (2) and then work out capital gain in accordance with that provision. That assessee may be given adequate opportunity of hearing and placing evidences before him before deciding the issue. In the result, ground No. 1, 2 and 3 of the appeal of the assessee are allowed with above direction.
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