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2017 (9) TMI 516 - ITAT MUMBAICapital gain computation - Sale consideration should be restricted to stamp duty valuation as against the Fair Market value determined by the DVO - assessee transferred the rights in the property - provisions of section 50C applicability to the transaction of transfer of rights in the immovable properties - Held that:- During the year the assessee transferred the rights in the property to Mr.Jaykumar Dhadda, Mr.Narendra Kumar Dhadda and Mr.Dhanraj Dhadda and sons private limited at cost by transferring the amount of advance to the said persons with the condition that the balance outstanding price was to be met by the transferees. No capital gain was shown in the return of income as the transfer was effected at cost. The AO calculated the short term capital gain on these transfer taking the market price of the said rights according to DVO report by rejecting the without prejudice submission of the ld AR that the capital gain be calculated on the basis of value as per stamp valuation authority as per the provisions of 50C of the Act on the ground that in the present case only rights were transferred and not the land or building. In the appellate proceedings, the ld.CIT(A) partly allowed the appeal of the assessee by direction the AO to calculate capital gains as per the value of stamp valuation authority u/s 50C and not as per DVO valuation. In our opinion, the ld.CIT(A) has taken a correct view by directing the AO to adopt the value u/s 50C of the Act for the purpose of bringing the capital gain to tax as the transfer price for the purpose of capital gain can not be higher than the FMA u/s 50C of the Act. Accordingly, we uphold the same by dismissing the appeal of the revenue. In the result, the appeal of the revenue is dismissed.
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