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of <h1>ITAT directs AO to compute capital gains based on original property value, upholds Rajasthan Tax Board's order</h1> <h3>Shri Laxman Das Sabdani Versus The ITO, Ward-4, Jaipur.</h3> Shri Laxman Das Sabdani Versus The ITO, Ward-4, Jaipur. - TMI Issues:1. Determination of deemed value of property for capital gains calculation under Section 50C.2. Consideration of original property value versus enhanced value by Stamp Valuation Authorities.3. Impact of Rajasthan Tax Board's order on Stamp Duty valuation.4. Requirement of fresh order by Collector Stamp to give effect to Rajasthan Tax Board's decision.Issue 1: Determination of Deemed Value of PropertyThe assessee appealed against the order confirming the deemed value of the property at Rs. 77,03,999 by the AO for the assessment year 2009-10. The property was sold for Rs. 23,00,000, but the value was reassessed by the Stamp Valuation Authorities twice, eventually reaching Rs. 77,03,999. The AO determined capital gain at Rs. 54,03,999, which was contested by the assessee.Issue 2: Original Property Value vs. Enhanced ValueThe assessee argued that the original sale deed value of Rs. 23,00,000 should be considered for capital gains calculation under Section 50C, not the enhanced value of Rs. 77,03,999. The Rajasthan Tax Board set aside the Collector's order enhancing the property value, indicating finality in the matter.Issue 3: Rajasthan Tax Board's Impact on Stamp Duty ValuationThe Rajasthan Tax Board quashed the Collector's order enhancing the property value, leading to a refund of stamp duty to the buyer. The Stamp Duty Authorities reinstated the property value at Rs. 23,00,000, rejecting the earlier enhanced value of Rs. 77,03,999. The ITAT admitted additional evidence supporting the reinstatement of the original property value.Issue 4: Requirement of Fresh Order by Collector StampThe CIT(A) upheld the AO's decision based on the need for a fresh order by the Collector Stamp to give effect to the Rajasthan Tax Board's decision. However, the ITAT found no basis for not accepting the Rajasthan Tax Board's verdict and directed the AO to consider the original property value of Rs. 23,00,000 for capital gains calculation under Section 50C.In conclusion, the ITAT allowed the assessee's appeal, directing the AO to compute capital gains based on the original property value of Rs. 23,00,000 as per the registered sale deed. The decision emphasized the finality of the Rajasthan Tax Board's order and the acceptance of the original property value by the Stamp Duty Authorities, overriding the enhanced value previously determined.
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