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2016 (12) TMI 611 - ITAT AHMEDABADCapital gain computation - transfer - computation of value of the plot - addition made with aid of section 50C - Held that:- Validity of unregistered agreement has not been denied for the purpose of adducing it as evidence for obtaining the benefit flowing from such contract. But for the purpose of protecting the possession, un-registered contract could not be enforced. The “transfer” within the meaning of section 2(47) of the Income Tax Act would complete, if possession is protected. Therefore,no merit in the first fold of submissions raised by the ld.counsel for the assessee. Right to obtain sale deed executed was accrued in favour of the vendee. The rates applicable on 7.5.2007 ought to be applied for determining the value of the property for the purpose of computing capital gain. It has been brought to my notice that ld.DVO has adopted rates as applicable on 20.10.2010. I accepted this fold of contentions and directed the AO to compute the value of the property by adopting the rate at ₹ 75/- per sq.meter. If this value exceeds the value declared by the assessee in the sale deed, and adopted for computing the capital gain, then, the AO would take this value, otherwise, capital gain would be computed on sale consideration disclosed by the assessee in his computation. The ld.AO shall carry out this exercise after providing opportunity of hearing to the assessee.
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