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2015 (4) TMI 471 - ITAT DELHI

2015 (4) TMI 471 - ITAT DELHI - TMI - Computation of the full value of consideration of the property - Computation of capital gain - whether the AO was right in substituting `the full value of the consideration received or accruing as a result of the transfer of the capital asset’ with the ‘fair market value’ determined by the DVO - Held that:- when the legislature has provided to consider the full value of the consideration received or accruing as a result of the transfer of the capital asset, .....

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n 48, which mandates that the computation of capital gains should be done by considering the full value of the consideration received or accruing as a result of the transfer of a capital asset.

A mere report of the DVO estimating higher value of the property cannot be considered as an evidence of the actual full value of consideration received or accruing as a result of the transfer of capital asset.

It is manifest from a copy of the Registered sale deed that the stamp valu .....

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is against the direction to adopt sale consideration at ₹ 12.50 lac instead of a higher value computed by the Departmental Valuation Officer (hereinafter called the DVO ). 3. Briefly stated, the facts of the case are that the assessee sold certain properties during the year in question. One of the properties sold was B- 1/455, Janak Puri, New Delhi, in which the assessee had half share. Long-term capital gain of ₹ 9,90,294/- was declared from the transfer of this property. Such prop .....

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76,46,300/-. By considering this valuation of the DVO, the AO adopted the sale price at ₹ 38,23,150/-, being half share in the property and re-computed the amount of long-term capital gain. The ld. CIT(A) overturned the assessment order on this issue. The Revenue is aggrieved against the reduction in the amount of full value of consideration of this property. 4. We have heard the rival submissions and perused the relevant material on record. It can be observed that the only point agitated .....

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he transfer of property and (ii) the cost of acquisition of the asset and the cost of any improvement thereto; from the full value of the consideration received or accruing as a result of the transfer of the capital asset . 5. Coming back to the factual matrix of the case, it can be seen that the property was apparently transferred for a sum of ₹ 25 lac. Now, the question arises as to whether the AO was right in substituting the full value of the consideration received or accruing as a res .....

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nd conclusively prove with some clinching evidence that the full value of the consideration received or accruing as a result of the transfer of a capital asset was, in fact, any amount higher than the one depicted in the sale deed. In the absence of any such an evidence, there can be no scope for frustrating the prescription of section 48, which mandates that the computation of capital gains should be done by considering the full value of the consideration received or accruing as a result of the .....

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pon him to establish a negative. Similar view has been reiterated in CIT vs. Shivakami Co. P. Ltd. (1986) 159 ITR 71 (SC). In this case, their Lordships have laid down that no addition can be made unless there is evidence that more consideration than what was stated in the document, was received. In the light of the above decisions, it is manifest that no addition can be made unless the Revenue proves understatement of consideration with some cogent evidence. A mere report of the DVO estimating .....

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