Section 50C could not replace agreed consideration where stamp valuation covered a larger area than the actual transfer.

Capital gains could not be recomputed by substituting stamp duty valuation under section 50C where the agreed consideration had already been accepted by the Department under section 269UL(3) and the later development agreement was on the same terms as an earlier memorandum of understanding. The stamp valuation was based on a later date and a larger land area than that actually covered by the assessee's transfer of development rights, and no material showed that the assessee received the higher amount adopted for stamp duty purposes. Accordingly, the addition based on stamp duty value was not justified.

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Issues: Whether capital gains could be computed by invoking section 50C on the stamp duty valuation instead of the agreed consideration accepted under section 269UL(3), where the development rights were transferred pursuant to an earlier memorandum of understanding and the stamp valuation related to a larger area than the land actually covered by the assessee's transfer.

Analysis: The agreed consideration had already been accepted by the Department under section 269UL(3) and the formal development agreement was executed later on the same terms. The stamp duty valuation was made with reference to a later date and to a larger land area, whereas the assessee had transferred development rights only in respect of the area owned by it. No material was shown to establish that the assessee actually received the higher value adopted for stamp duty purposes.

Conclusion: Section 50C could not be applied to substitute the actual consideration, and the addition made on the basis of stamp duty valuation was not justified.

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