TMI Blog2012 (2) TMI 520X X X X Extracts X X X X X X X X Extracts X X X X ..... ration was understated. Market value cannot be substituted for sale consideration while computing capital gain. Only for the limited purpose of computation of capital gain in respect of sale of land and building, stamp duty value has to be substituted for sale consideration in view of specific provisions of section 50C. Therefore, provisions of section 50C can not be applied in case of transfer of tenancy rights in respect of land or building or both. In this case, admittedly the document was not registered and no stamp duty had been paid. Therefore stamp duty value can not be adopted for the purpose of computation of capital gain and the value shown in the agreement has to be adopted as there is no material to show that the assessee had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 50C were applicable. He, therefore adopted stamp duty value as sale consideration for the computation of capital gain. 2.1 In appeal, CIT(A) held that tenancy right was no doubt a capital asset but the same could not be considered as land and building. Therefore, provisions of section 50C were not applicable. Moreover, the tenancy surrender agreement was not registered and therefore, the stamp duty value was not known. CIT(A) further held that the sale consideration shown by the assessee was in conformity with the market value. The AO himself had taken the value of entire asset at ₹ 91,36,050/-. The asset was more than 40 years old and stamp duty reckoner value was normally 50% of the market value. The assessee was only a su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tentions carefully. The dispute is regarding the sale value of the transfer of tenancy rights for the purpose of computation of capital gain. There is no dispute that the transfer of tenancy rights is a capital asset and income is assessable as capital gain. The dispute is only about sale value. Assessee had shown value of ₹ 55.00 lacs in respect of transfer of tenancy rights relating to about 1800 sq.ft. area of factory godown. Capital gain has to be computed on the basis of sale consideration received or accruing to the assessee. Even if the document was not registered, the capital gain has to be computed on the basis of the sale consideration shown and received by the assessee unless there was material to show that the sale conside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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