Capital gains cannot be computed on DVO valuation absent evidence of extra consideration beyond the declared sale price.

Section 48 requires capital gains to be computed on the full value of consideration actually received on transfer. Where the registered sale deed reflected a declared consideration of Rs. 18 lakhs and the Revenue produced no material showing receipt of any higher amount, the declared price could not be displaced by a DVO valuation. After deletion of the earlier provision that permitted substitution under section 52, the burden remained on the Revenue to prove understatement before adopting a higher figure. In the absence of evidence of extra consideration, fair market value could not replace the actual sale price for capital gains computation.

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Issues: Whether the Assessing Officer was justified in substituting the declared sale consideration with the fair market value determined by the DVO for computing capital gains.

Analysis: Section 48 of the Income-tax Act, 1961 requires capital gains to be computed with reference to the full value of consideration received on transfer. The declared consideration in the registered sale deed was Rs. 18 lakhs, and there was no material to show that the assessee received any higher amount. The earlier legal position permitting substitution of consideration under section 52 had ceased to operate after its deletion, and the settled law placed the burden on the Revenue to establish understatement of consideration before adopting a higher figure. In the absence of evidence of extra consideration, a mere valuation report could not replace the actual sale price.

Conclusion: The substitution of the declared consideration by the DVO's valuation was not permissible, and no capital gain could be brought to tax on that basis.

Ratio Decidendi: In the absence of evidence that the assessee received more than the declared sale consideration, the Revenue cannot replace the actual consideration by fair market value for computation of capital gains.

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