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2023 (3) TMI 149 - ITAT SURATCapital gain computation - Addition invoking provisions of Section 50C - issue of valuation to DVO was rejected by taking view that it is a time barring matter - HELD THAT:- Assessee right from the beginning is claiming that the assessee and his co-owner agreed that the purchaser shall bear the levy of charges for conversion of land use from Navi sharat to Juni sharat and the payment of Rs. 1.61 Crore was paid by the purchaser on behalf of assessee as the assessee and his brothers were not having such means. No investigation of facts about the payment of said premium paid by purchaser, in a consequence acquisition of asset, was carried out by the assessing officer or by ld CIT(A). Considering the confirmation filed by the purchaser that land premium of Rs. 1.61 Crore paid by the purchaser was integral part of the sale consideration it was paid by the purchaser, in furtherance of oral contract. No doubt such premium was paid by purchaser directly to the state revenue authorities. In making such payment apart from showing in sale deed, there was no financial loss to the State Government on payment of stamp duty as the stamp duty was collected as per jantri rate, which was much more than the sale consideration shown on the sale deed. The Hon’ble jurisdictional High Court in PCIT Vs Ravjibhai Naginbhai Thesia [2016 (9) TMI 645 - GUJARAT HIGH COURT] held that once reference made to the DVO under section 50C, even though it is lesser than value adopted by stamp valuation authority, the assessing officer is to compute capital gain by taking valuation given by DVO. Similar view was taken by Allahabad High Court in CIT Vs Dr Indira Swaroop Bhatnagar (2013 (2) TMI 456 - ALLAHABAD HIGH COURT] - We find that that actual difference in the sale consideration claimed by the assessee at Rs. 3.41 Crore and the value determined by DVO at Rs. 3.56 Crore, is only 6.66%, therefore, the assessee is entitled for the benefit of third proviso to section 50C(1), which has been held as retrospective in series of decision by Tribunal. We direct the assessing officer to compute the capital gain by consideration the cost of entire asset at Rs. 3.41 Crore and grant benefit of third proviso to section 50C(1). In the result, the appeal of the assessee is allowed in the above terms.
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