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2017 (12) TMI 1167 - AT - Income TaxCapital gain - applicability of section 50C and the valuation by DVO/FMV - Held that:- We are of the considered opinion that in order to calculate exact capital gain, applicability of section 50C and the valuation by DVO/FMV, the matter needs further application of mind at the level of assessing officer on all counts and position of law with regard to the computation of capital gain as per the provisions of section 45 to 55A of the Act. We find that the FAA has directed the First Assessing Authority to take the sale consideration at ₹ 1,89,98,000/- as determined by DVO which is wrong and also contrary to the provisions of section 50C of the Act, as the provisions of this section provides for taking the value equal to stamp valuation in the event to sale consideration being lower to the value as per the stamp valuation authority. This matter requires fresh application of mind at the level of AO. Accordingly we set aside the order of the FAA and restore this matter to the file of AO with a direction to consider all the evidences as may be filed by the assessee in the set aside proceedings and compute the capital gain after considering the cost of acquisition as per law in terms our discussion above and taking sale consideration equal to the value of stamp valuation authority for the purpose of capital gain. Accordingly, we restore the matter back to the file of the AO to assess the capital gain denovo as per facts and law. Resultantly, the issue is allowed for statistical purposes.
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