9911796707
TMI Blog2012 (7) TMI 611X X X X Extracts X X X X X X X X Extracts X X X X ..... . Rajan Respondent by : Shri Marlon Rego O R D E R Per N. K. BILLAIYA, AM : With this appeal, Revenue has shown its grievance against the order of the CIT[A] 12 Mumbai dated 31.12.2010 for the AY 2007 08. 2. The only ground taken is against the direction of the CIT[A] directing the assessing officer to adopt value given by the MIDC authorities for calculation of long term capital gains which is in contravention with the provisions of sec 50C of the Act. 3. Facts at the time of assessment proceedings show that the return of income for the year under consideration was filed on 30.10.2007 declaring total income at Rs.NIL . The said return was selected for scrutiny assessment and accordingly notices u/s 143[2] 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the building completion certificate and transfer orders from MIDC , there after final deed of assignment was registered with the registration authorities after paying requisite stamp duties . This has resulted in the difference in the sale value and the market value as the company has sold only the MIDC land to the parties where as the registration authorities have valued MIDC land and also completed construction work [ Factory Building ] which is constructed by the purchasers. 7. This contention of the assessee company was rejected by the AO who concluded that the value adopted by the Sub-Registrar for the purpose of payment of stamp duty far exceeds the actual consideration received by the assessee company . The AO also rejected the let ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue adopted by MIDC cannot be brushed aside lightly as MIDC is a government agency and would place the value of land at a similar rate as placed by the stamp duty authorities and directed the assessing officer to recalculate the consideration received by the appellant adopting the MIDC value. 10. Aggrieved by the decision, the Revenue is before us. The ld DR supporting the order of the AO argued that provisions of sec 50C are mandatory where the AO is bound to take stamp duty value as full value of consideration for the purposes of calculation of long term capital gains and AO has right fully adopted such value and the Ld.CIT[A] has grossly erred in directing the AO to adopt the value as per MIDC rates. Ld.Counsel appearing for the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... priate valuation officer after giving reasonable opportunity of being heard to the assessee . The AO is further directed to verify from the transferees of lands , who actually constructed the factory building and further verify from the MIDC authorities whether the assignment of lease was of sub-divided plots or land and building and if the transfer was only of sub-divided plots of lands than the value of stamp duty collected for building should be ignored for the purposes of calculation of long term capital gains . 13. Modifying the order of the ld CIT[A] , the matter is restored back to the files of the AO with above directions . 14. Appeal of the Revenue is allowed for statistical purposes . Order pronounced on this 25th day of May ..... X X X X Extracts X X X X X X X X Extracts X X X X
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