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2017 (5) TMI 298 - AT - Income TaxAddition with the aid of section 50C(1) - Held that:- The alleged agreement/MOU was executed on 5.7.2007. This memorandum contains that sale consideration would be calculated at the rate of ₹ 1195/- per sq.meter. The vendee has paid an amount of ₹ 20 lakhs by cheque bearing no.366815 dated 12.4.2007 and amount of ₹ 12 lakhs through account payee cheque on 23.5.2007. Thereafter schedule of payment has been given in para-2 of the memorandum. This schedule of payment is subsequent to alleged execution of the sale deed. But one thing is clear from this memorandum, a right in persona has been created in favour of the vendee as well as in favour of the vendor, which he can be enforced with the help of suit for specific performance. In such situation, we are of the view that fair market value of this property ought to have been determined by the AO as provided in section 50C(2). We, therefore, set aside this issue to the file of the AO for re-adjudication. The ld.AO shall call for a report from the DVO as contemplated in section 50C(2) and the ld.DVO shall keep in mind any encumbrance created on the property by virtue of the alleged execution of the agreement. In this way, first grievance of the assessee is allowed for statistical purpose. Disallowance out of cost of transfer while computing capital gain - Held that:- CIT(A) has remitted this issue for re-verification and reconsideration. No interference is called for in such finding of the ld.CIT(A), because the ld.AO shall verify whether any expenditure is incurred by the assessee for transfer of this capital asset and if some expenditure was incurred then he will allow this expenditure. This ground of appeal is also allowed for statistical purpose.
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