| |
| The Tax Publishers2020 TaxPub(DT) 2668 (Chen-Trib) INCOME TAX ACT, 1961
Section 50C
Since difference between declared sales value and section 50C guidance value was about 2.6% i.e. less than 10%, actual sale consideration was to be adopted for computing capital gain in the hands of the assessee.
|
Capital gains - Full value of consideration - Applicability of section 50C - difference between the declared sales value and section 50C guidance value was about 2.6%
Assessee sold certain property. AO applied section 50C guidance value for computing long-term capital gains. Assessee challenged this on the ground that difference between the declared sales value and section 50C guidance value was about 2.6%. Held: It is a settled proposition of law that in case difference between sale value declared by assessee and valuation done by revenue authorities is less than 10% then actual sale consideration is to be adopted for computing capital gain in the hands of the assessee. In assessee's case, difference between declared sales value and section 50C guidance value was about 2.6%, income from long-term capital gains as declared by the assessee had to be accepted.
Followed:Radhika Sales Corporation v. Addl. CIT [ITA No. 1474/Pun/2016 relating to assessment year 2011-12, Order, dated 16-11-2018] and Asst. CIT, Circle-I, v. Smt. S. Suvarna Rekha, ITA No. 743/Hyd/2009 relating to assessment year 2006-07, Order, dated 29-10-2010.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2007-08 to 2009-10
INCOME TAX ACT, 1961
Section ????
 SUBSCRIBE FOR FULL CONTENT
|