2014 (8) TMI 719

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....e grievance of the Revenue is that the ld. CIT(A) erred in directing the A.O. to compute the long term capital gain on sale of two plots of land using the valuation of stamp duty authority. The return of income was filed by the assessee on 14-8-2008 declaring total income of Rs. 32.53 lacs. The return was selected for assessment and statutory notice was issued and served upon the assessee. During the course of assessment proceedings, the A.O. noticed that the assessee has shown long term capital gain from sale of two plots of land. The assessee was asked to explain as to why the provisions of section 50-C of the Income Tax Act, 1961 should not be applied on the sale transaction of two plots of land. It was explained that the valuation adopt....

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.... has held as under:- "18. Taking into account the arguments of the DR and facts coming out of the orders of the revenue authorities, it is clear that the property had already conveyed to the buyer prior to 2001-02 and it was only the final part payment which was made during the year along with the formal documentation. The fact that the property in question was agreed to be sold and conveyance done even prior to financial year 2001-02 is not disputed even in the assessment order. The only skin of the nail, which the AO is using is the final payment and documentation and on that basis, the application of section 50. It is crystal clear from the fact that except for the last instalment everything was completed prior to 2001-02, in which case....