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2019 (2) TMI 1124 - AT - Income TaxCapital gain computation - assessee has entered into agreement to sale of its factory line and building on 14/08/2007 wherein consideration of ₹ 27.62 Crores was decided and also received a sum of ₹ 14.39 Crores by cheque at the signing of the agreement - AO proposed to take valuation of property as on the date of registration i.e., 29/04/2009 and thereafter, at the request of the assessee matter was referred to the DVO - whether valuation to be taken as on the date of entering into agreement or as on the date when the sale deed is actually registered - HELD THAT :- From the record, we found that at the time of entering into agreement to sale, the assessee has already received more than 50% of the advance, however, due to certain conditions, the sale deed could not be registered. Finally, it was registered only on 29/04/2009. When agreement to sale is executed between the parties and part consideration is received, approval of the authorities of Section 50C of the Act takes place and computation u/s.48 of the Act will start accordingly. We do not find any infirmity in the order of CIT(A) above for holding that provisions of 50C is applicable as on the date of execution of the agreement to sale. Accordingly, AO is directed to take the fair market value of property as on the date of agreement to sale i.e., on 14/08/2007. We direct accordingly.
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