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2016 (4) TMI 1052 - AT - Income TaxAddition u/s 50C - Computation of capital gain - difference in sale price in sale deed and valuation by the stamp valuation authorities - Held that:- No doubt section 50C contemplates replacement of full value of consideration received as a result of such transfer. But a transfer of capital asset should be either land or building. It does not authorize the AO to replace the full value of the consideration in each and every case, where capital gain is to be computed. This deeming fiction is applicable only when the land or building is being transferred. Whatever compensation received would be for relinquishment of right to obtain a sale deed, which is also a “capital asset” within the meaning of section 2(14) of the Income Tax Act but not akin to land or building. Therefore, in this case, no addition can be made with the aid of section 50C in the hands of the assessee - Decided in favour of assessee
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