Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2006 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2006 (6) TMI 147 - AT - Income TaxComputation of Capital gain - Valuation of the property - The full value of consideration by the fair market value on the basis of the DVO's report? - HELD THAT:- From the facts available on record it is clear that the sale consideration as per the registered document was only a sum of Rs. 18 lakhs. There was no material available with the AO to show that the assessee received much more than a sum of Rs. 18 lakhs as shown in the registered documents. We are bound to follow the decision of the Hon'ble Supreme Court in the case of K.P. Verghese [1981 (9) TMI 1 - SUPREME COURT] and in the case of C.B. Gautam[1992 (11) TMI 1 - SUPREME COURT]. As observed by us, there is no evidence before the Revenue authorities to show or suspect that the sale value declared in the instrument of transfer was understated and that consideration over and above what was stated in the instrument of transfer had passed between the parties. We, therefore, hold that the action of the AO in substituting the full value of the consideration received by the fair market value as stated by the DVO in his report was not in accordance with law. In the circumstances, we hold that there was no capital gain which could be brought to tax in the hands of the assessee. The appeal of the assessee is allowed. In the result, the appeal by the assessee is allowed.
|