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2020 (9) TMI 367 - AT - Income TaxCapital gain computation - market value of the property sold u/s. 50C - HELD THAT:- We have no reason to disbelieve the genuineness of the contents of the agreement.The issue of registration was resolved by an order of the Hon'ble High Court of Andhra Pradesh dated 13-2-2007. From the agreement, we observe that the payment was received by the assessee by cheque for transfer of land, therefore, the case is squarely covered by the proviso to section 50C of the Act. On identical facts, this Tribunal in the case of Smt. Chalasani Naga Ratna Kumari, Visakhapatnam [2016 (12) TMI 1406 - ITAT VISAKHAPATNAM] directed the AO to adopt the value of the property as on the date of execution of the agreement for capital gains We direct the AO to adopt the value of the property for the purpose of section 50C of the Act for computing capital gains as on the date of execution of agreement to sale, but not as on the date of sale deed. Accordingly, we set aside the order of the Ld. CIT (A) and remit the matter back to the file of the AO for limited purpose of verification of SRO value as on the date of sale agreement for determination of the capital gains. The AO is required to give opportunity to the assessee before passing the order. Appeal of the assessee is allowed for statistical purpose.
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