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2017 (8) TMI 844 - AT - Income TaxSale of land at consideration less than the market value of the land - Applicability of section 50C - addition based on the inference that the assessee could have sold land at higher price as reflected in the records of the stamp valuation authorities - Held that:- The tax authorities assumed that the provisions of Section 50C are applicable in such cases overlooking the fact that Section 50C is only applicable with respect to sale of capital assets and in respect of the transfer of the stock-in-trade, a new provision has been inserted but the same comes into play only w.e.f. 01-04-2014 which clarifies that for the year under consideration, the market value cannot be substituted by the A.O. merely on ipsi dixit. There is no provision under the Act, applicable for the A.Y. 2008-09, under which the A.O. can substitute the market value to the rate at which the assessee sold the property. Therefore, set aside the orders of the A.O. as well as the CIT(A) and hold that only the value at which the assessee sold the land should be taken into consideration for the purpose of computing the assessable income and the provisions of Section 50C are not applicable in the instant case. - Decided in favour of assessee.
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