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2017 (9) TMI 1045 - HC - Income TaxSale of right in the land through power of attorney - addition u/s 50C after having held that the transaction was transfer u/s 2(47) read with Section 50(c) - Held that:- AO was not justified in applying the provisions of Section 50C of the I.T. Act for increasing the short terms capital gain. The Ld. CIT(A) was justified in deleting the increase in the value of short term capital gain. It is not the case of the Revenue that the assessee has received more consideration as shown in the agreement. In case there was any evidence to show that the consideration received by the assessee was more than the consideration mentioned in the agreement then the Revenue could have increased the short term capital gain. On the basis of Section 50C of the Act, the AO was not justified in enhancing the short term capital gain. It will not be out of place to mention here that those transactions which are shown as transaction under Section 50(C) [Explanation-2], even if taken into consideration, the transaction which take place as short term capital gain in total consideration of the payment after sale agreement was determined as ₹ 1.35 crores and it cannot be assessed. Therefore, both the authorities have committed no error in reaching the conclusion. Neither the stamp authority has assessed the complete charges because transaction has not taken place, and in our considered opinion, the valuation which was determined by the AO is nothing but harassment to the honest tax payers of a transaction which has been rightly reversed by the CIT(A) and confirmed by the Tribunal. In this view of the matter, both the CIT(A) and Tribunal have not committed any error. The issue is answered in favour of the assessee and against the department.
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