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TMI Blog2008 (4) TMI 419X X X X Extracts X X X X X X X X Extracts X X X X ..... re that the assessee has sold land, building and machinery in the assessment year under consideration. The capital gain attributable to sale of land is subject matter of dispute before us. The assessee sold the land situated at Bhatinda. The assessee registered the property at Rs. 220.81 per sq. yd for consideration of Rs. 16.34 lakhs. According to the AO, the value is applicable to the land as per Punjab State Rules dated 20.09.2006 is Rs. 500/- per sq. yd. Accordingly, the AO invoked the provisions of Section 50C of the Income Tax Act, 1961 and referred the matter to DVO and got the valuation from the DVO at Rs. 72 lacs and after taking indexed cost of acquisition of the land at Rs. 9.60 lacs, determined the capital gain at Rs. 62.40 lacs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amp valuation authority) for the purpose of payment of stamp duty in respect of such transfer, the value sol adopted or assessed shall for the purposes of Section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer. Memorandum Explaining Provisions of Finance Bill, 2002, states in this regard as under: The Bill proposes to insert a new Section 50C in the it Act to make a special provision for determining the full value of consideration in cases of transfer of immovable property. It is proposed to provide that where the consideration declared to be received or accruing as a result of the transfer of land or building or both, is less than the value adopted or assessed by any authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct from 1st April, 2003, and will, accordingly, apply in relation to the asstt. year 2003-04 and subsequent years. From the perusal of Notes on Clauses and Memorandum Explaining the Provisions in the Finance Bill, 2002, it becomes explicitly clear that if the consideration declared to be received on sale of land or building or both is less than the value adopted or assessed by any authority of the State Government for the purposes of stamp duty in respect of such transfer, the value so adopted or assessed shall be deemed to be the full value of consideration and capital gain shall be computed accordingly under Section 48 of the Act. 5. In the present case, the property registered at Rs. 16.34 lacs @ Rs. 220.81 per sq. yd. The contention ..... X X X X Extracts X X X X X X X X Extracts X X X X
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