Capital gains valuation under section 50C: circle rate factor follows revenue land classification, not actual commercial use.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Capital gains computation under section 50C: the property is recorded as agricultural/residential in revenue records, so circle rate characterisation must follow those records and the multiplicative factor of 1 applies even though the building was used commercially without sanction; deemed conversion cannot be presumed from unauthorized use until recognised by revenue authorities, so the assessing officer's application of factor 3 was contrary to revenue records and invalid, and the appellate authority's direction to apply factor 1 was affirmed by ITAT, resulting in the decision against the revenue.....