2012 (7) TMI 611

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..... s of sec 50C of the Act. 3. Facts at the time of assessment proceedings show that the return of income for the year under consideration was filed on 30.10.2007 declaring total income at Rs.NIL . The said return was selected for scrutiny assessment and accordingly notices u/s 143[2] & 142[1] were issued and served upon the assessee . The assessee company is engaged in the business of dealer in Gold and Silver Metal. 4. During the previous year relevant to AY 2006 -07 , the assessee company sub-divided plot of land admeasuring 9108 sq.mt located at MIDC , Pimpri Chinchivad Industrial Area and received sub division order vide letter No.MIDC/HQ/CP dated 15/04/2005 . Subsequently , the assessee company entered into agreements for transfer of t .....

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..... the purchasers. 7. This contention of the assessee company was rejected by the AO who concluded that the value adopted by the Sub-Registrar for the purpose of payment of stamp duty far exceeds the actual consideration received by the assessee company . The AO also rejected the letter of the MIDC which certified the industrial rate of Pimpri Chinchwad industrial area at Rs. 2580 /- .The AO finally computed the long term capital gains taking the value adopted for stamp duty purpose as full value of consideration in line with the provisions of sec.50C of the Act. 8. The matter was taken to the CIT[A]. Before the CIT[A] the assessee reiterated its stand that it has transferred only the sub-divided plots of land and the construction of the fa .....

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..... stamp duty value as full value of consideration for the purposes of calculation of long term capital gains and AO has right fully adopted such value and the Ld.CIT[A] has grossly erred in directing the AO to adopt the value as per MIDC rates. Ld.Counsel appearing for the assessee company submitted that the facts have not been properly appreciated by the AO in as much as it has been submitted time and again that the assessee company has transferred only the sub-divided plots of lands and the factory buildings have been constructed by the transferees as per the norms of the MIDC and only after such completion the plots were registered before the sub-registrar . The counsel further argued that where the AO proposes to adopt the stamp duty valu .....

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