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2018 (1) TMI 847 - AT - Income TaxComputation of capital gain - invocation of provisions of sec 50C - most appropriate method for valuation of the galas/building of the assessee - FMV determination - satisfaction of conditions contemplating a transfer as per Sec. 2(47)(v) - Held that:- The tenancies in Mumbai are statutorily controlled by the rent control legislations and rent fetched were likely to remain unaltered for years to come, therefore, in the case of the present assessee before us the valuation of the property was required to be done as per the Rent Capitalization Method. We do not approve of the summary acceptance by CIT-A of the claim of the assessee that as the sale price of the galas/buildings received by the assessee was more than the value determined as per the Rent Capitalisation Method, therefore, no addition was called for in the hands of the assessee. We though are not oblivious of the fact that the assessee had placed on record the valuation of the 31 galas/building as per the Schedule III – Part B of the Wealth tax Act, 1957, but then, we are of the considered view that the said valuation furnished by the assessee was required to be verified and could not have been accepted on the very face of it. We thus in all fairness restore the matter to the file of A.O, and therein direct that the Fair market value of the property be got determined as per the Rent Capitalization Method - Decided in favour of assessee for statistical purposes. Not allowing set-off of the Short Term Capital Loss against the capital gains - Held that:- As perused the order of the A.O in context of the issue under consideration and are of the considered view that he had conclusively proved that the transaction carried out by the assessee was merely a sham transaction with a purpose of evading the tax liability. We have deliberated at length on the orders of the lower authorities as regards the issue under consideration and find ourselves to be in agreement with the view taken by the lower authorities. Before parting, we may herein observe that nothing was brought to our notice which could prove that the observations of the lower authorities were perverse or incorrect. The Ground of appeal No. 1 raised by the assessee is dismissed
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