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2019 (11) TMI 807 - AT - Income TaxShort term capital gain - Applicability of the proviso to section 50C - adopting deemed sale value of Karol Bagh property u/s. 50C as per circle rate applicable as on 30.11.2011 against correctly claimed u/s. 50C as per the circle rates applicable as on 05.08.2011 (which is also the actual and apparent sale consideration) - HELD THAT:- In terms of section 50C in cases where the consideration received on transfer of the capital asset being land or building, is less than the value adopted, assessed or assessable by stamp valuation authority for the purpose of the payment of a stamp duty in respect of such transfer, then the value so adopted, assessed or assessable shall for the purpose of computing capital gain be deemed as full value of consideration received as a result of transfer. In the case of the assessee Stamp Valuation Authorities valued the property for the purpose of a stamp duty at ₹ 1,84,50,000/-, therefore invoking the section 50C, the AO took the amount of full value consideration at ₹ 1,84,50,000/-as against value of ₹ 1,10,00,000/- declared by the assessee as actual sale consideration. It is also evident that before the CIT(A) assessee has not made any claim of existence of any such agreement dated 28/07/2011, a copy of which has been produced before us for the first time. As the copy of agreement has been produced before us for the first time, in the interest of substantial justice, we admit the same as additional evidence and restore the matter to the learned Assessing Officer afresh for deciding applicability of the proviso to section 50C. The assessee is directed to produce original copy of the agreement before the AO who may carry out inquiries as deemed fit for verifying genuineness or authenticity of the agreement. AO may, if required, verify the date of purchase of stamp used for the agreement purchase date from the register of the stamp vendor or attestation of the agreement from the register of Notary Public, who has attested the agreement or may examine the purchaser of the property and witness(es) who has signed on the copy of the agreement. It will be the responsibility of the assessee to produce all the necessary document or witnesses for carrying out necessary inquiries for verification of the genuineness or authenticity of the agreement. Upon verification, if the AO finds that the agreement is a genuine one, he may decide applicability of first proviso to section 50C of the in accordance with law. - Appeal of the assessee is allowed for the statistical properties.
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