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2019 (1) TMI 844 - AT - Income TaxAddition in the sale of property for the purpose of computing the capital gain - FMV determination - Held that:- Once FMV was to be determined by the DVO under section 50C(2) then he has to follow procedure contemplated under the Wealth-tax Act. His opinion was not final, but subject to appeal. His opinion is an estimated guess work determining the value of a property at a particular point of time. If variation between FMV claimed by the assessee vis-à-vis determined by the DVO is less than 10%, then there is no need to accept FMV determined by the DVO. Value disclosed by the assessee could also be stated to be true value representing FMV. In such situation no addition ought to be made. In the present case, variation is only 2.55% which is less than 10%. FMV adopted by the assessee in the sale deed itself does not require to be replaced, with the help of deeming fiction under section 50C(2). This ground of appeal and delete addition from the full sale consideration for the purpose of computing capital gain in the hands of the assessee. - Appeal of the assessee is allowed.
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