Capital gains valuation under section 50C: declared sale consideration accepted where legal constraints depressed the real transaction value.

In capital gains computation, the Tribunal held that the registered sale consideration could be adopted instead of the stamp duty valuation under section 50C where the record showed the property was subject to Urban Land (Ceiling and Regulation) Act-related constraints and the actual consideration received was materially below the stamp duty value. Relying on an earlier decision involving similarly situated co-owners of the same property, the Tribunal accepted the declared consideration as reflecting the real transaction value and directed the Assessing Officer to compute capital gains on the assessee's share of that amount.

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Issues: Whether, for computing capital gains, the sale consideration stated in the registered sale deed should be adopted instead of the stamp duty valuation under section 50C.

Analysis: The dispute was identical to an earlier decision involving similarly situated co-owners of the same property. The property was affected by proceedings under the Urban Land (Ceiling and Regulation) Act and related disputes, and the material on record showed that the actual consideration received was far below the stamp duty value. Following the earlier reasoned decision on the same factual and legal issue, the Tribunal held that the declared sale consideration, and not the stamp duty valuation, should be taken for computing capital gains.

Conclusion: The issue was decided in favour of the assessee and the Assessing Officer was directed to adopt the assessee's share of the sale consideration for capital gains computation.

Ratio Decidendi: Where the facts show that the property is under legal and regulatory constraints and the declared consideration reflects the real transaction value, the stamp duty value under section 50C need not be adopted for computing capital gains.

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