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2018 (12) TMI 1395 - HC - Income TaxCapital gain computation on the basis of stamp duty valuation of the property in question - invoking section 50C - stamp duty authority had assessed the value of the property on the date of the execution of development agreement - Held that:- It can be seen that there were two significant factors why the CIT(A) and the Tribunal did not adopt the valuation of the stamp authority for the purpose of collecting capital gain tax in the hands of the assessee. Firstly, there was a gap of nearly 3 years between the date of execution of the MOU and the execution of a formal development agreement. Obviously, the valuation made by the stamp authority was as on the date of the execution of the development agreement. Secondly and more importantly, the stamp valuation of ₹ 4.63 crores was for a larger area of 7644 sq. meters where the assessee had assigned the development rights only with respect to 3872 sq. meters. No evidence has been produced by the Revenue at any stage that the assessee actually received the value which was adopted by the stamp valuation authority. Even the development agreement clearly mention the area and the assessee is not the owner of the TDR, thus, cannot be saddled with the value adopted by the stamp duty purposes as the assessee is only the owner of 3872 sq.mts. for which he received the consideration of ₹ 2,51,00,000/, thus, the capital gain has to be computed on the amount which the assessee actually received, consequently, we are in agreement with the finding of the CIT (Appeals) that on the basis of deeming provision of section 50C, no addition can be made. - Decided against revenue
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