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2024 (2) TMI 927 - ITAT DELHICapital gain computation - FMV determination - reference to DVO - whether fair market value of the property sold by the assessee could be substituted with the value sought to be determined by the Departmental Valuation Officer (DVO) in terms of section 50C(2) of the Act when the variance between the actual consideration and DVO value is 4.97%? HELD THAT:- Variance between the value as determined by the ld DVO and the value as declared of the assessee is just 4.97%. We find that 3rd proviso to section 50C(1) of the Act gives leeway to the assessee to accommodate the variance up to 10% of the actual consideration. We find that though this amendment had been introduced in the statute by the Finance Act, 2018 w.e.f 01.04.2019, this amendment has been held to retrospective in the case of Maria Fernandes Cheryl [2021 (1) TMI 620 - ITAT MUMBAI] wherein it was held that amendment made in scheme of section 50C(1) of the Act by inserting third proviso thereto and by enhancing tolerance band for variations between stated sale consideration vis-à-vis stamp duty valuation from 5 per cent to 10 per cent are effective from date on which section 50C, itself was introduced, i.e 1-4-2003. Respectfully following the same, we hold that no substitution of sale consideration need to be made in the case of the present assessee and sale consideration at Rs. 1.10 lakhs reported by the assessee is to be accepted for the purpose of computation of Long Term Capital Gain. Accordingly, grounds raised by the assessee are allowed.
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