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2016 (4) TMI 864 - AT - Income TaxCapital gain - transfer of shares - applacability of section 50C - Held that:- What in law has transpired is the transfer of shares, and not of land and, accordingly, section 50C will not come into picture. This consideration, which appears to have prevailed with the Revenue authorities, is not valid. Find no infirmity in the assessee’s claim for legal expenses u/s.48(i), and uphold the same, in principle. However, it is not clear if the takeover agreement dated 13.4.2006, evidencing the transaction, and which constitutes the prime evidence, was before the Revenue authorities, whose finding as to the sale of land being the prime motive and the driver of the transaction has been affirmed by us. The said agreement would however have to be examined, if only to verify if the transaction as executed is in agreement therewith. The same states the total consideration (in the hands of both the assessee-transferors) at ₹ 890 lacs, while we observe the stated price, which is with reference to and in terms of unit of land, works to ₹ 925.75 lacs (88,843 sq. ft. x ₹ 1042 per sq. ft.). Subject to the A.O.’s verification, returning positive findings, we confirm the deductibility of the impugned expenses. We may however clarify that any apparent mistake/s, if any, could be rectified following the due process of law.
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