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2021 (9) TMI 227 - AT - Income TaxLong term capital gain - FMV determination - joint co-owners of property - deemed sale consideration for the purpose of computing the long term capital gain as per the 1st Proviso to section 50C - proportionate share of the assessee in fair market value of the property - fair market value as on registration of the conveyance deed i.e. 12.10.2010 as adopted by the AO - HELD THAT:- As the assessee has relied on the decision in the case of CIT vs. Vummudi Amarendran [2020 (10) TMI 517 - MADRAS HIGH COURT] wherein it was held that the amendment made in section 50C by inserting 1st Proviso with effect from 01.04.2017 is applicable retrospectively with effect from the date on which section 50C was introduced. Keeping in view that this decision we hold that the benefit of the 1st Proviso to section 50C is available to the assessee. We accordingly direct the AO to re-compute the capital gain chargeable to tax in the hands of the assessee by taking the proportionate share of the assessee in fair market value of the property as on 05.10.2010 as determined by the DVO as deemed sale consideration. AO is also directed to allow deduction on account of the indexed cost of acquisition of the property while computing the capital gain in accordance with law.
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