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2009 (11) TMI 948 - ITAT CHANDIGARHDetermination of capital gain on sale of land - nature of land - adoption of the stated consideration as the full value of consideration - AO rejecting the sale consideration stated in the registered sale deed because the other piece of land measuring 17 Kanal 18 Maria owned by the assessee has been sold for a much higher price - assessee argued that AO did not have the jurisdiction to disregard the actual consideration declared by the assessee in the registered sale deed - HELD THAT:- In our considered opinion, the action of the AO is not in consonance with the legal position - As decided in a later decision in the case of K.P. Varghese [1981 (9) TMI 1 - SUPREME COURT] held that a mere difference between the market value and the consideration stated in the sale deed does not permit the AO to assume a higher sale consideration for the purposes of computing capital gains. We find that the consideration stated in the registered sale deed has been disregarded by the AO without showing that the assessee has received more than what is declared or disclosed by him as the consideration. Even from the perusal of the assessment order, we find no material or evidence brought out by the AO which could justify the burden cast on the Revenue to show that the assessee has received more than what is declared or disclosed by him as consideration in the sale deed. Under such circumstances, therefore, we are in agreement with the conclusion drawn by the CIT(A) that no addition is merited in this case by disregarding the "full value of the consideration" declared by the assessee. The order of the C1T(A) deleting the addition on account of long-term capital gain on sale of 4 Kanal 10 Maria of land is hereby affirmed. Accordingly, the appeal of the Revenue is dismissed.
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