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TMI Blog2010 (6) TMI 640X X X X Extracts X X X X X X X X Extracts X X X X ..... which the fair market value assessed by the DVO is to be taken as the full value of consideration - no merit in the order of the AO in adopting the fair market value determined by the DVO as the full value of consideration for computing the income from capital gains - appeal of the Revenue is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... re correct. The computation is to be made under s. 48 under which 'full value of consideration' is to be taken into account, whereas under s. 55A of the Act, fair market value of a capital asset is determined. The CIT(A) thus held that the fair market value estimated by the DVO under s. 55A of the Act could not be substituted for the full value of consideration. Reliance was placed on the ratio laid down by the Hon'ble Delhi High Court in CIT v. Smt. Nilofer I. Singh [2009] 176 Taxman 252. The CIT(A) deleted the addition made by the AO. The Revenue is in appeal against the order of the CIT(A). 4. Mr. S.S. Kemwal appeared for the Revenue and Shri Navneet Sehgal appeared for the assessee and put forward their contentions. 5. We have heard t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... From the full value of the consideration, the amount of expenditure incurred wholly and exclusively in connection with such transfer as also the cost of acquisition of the asset and the cost of any improvement thereto have to be deducted. The expression 'full value of consideration' cannot be construed as having reference to the market value of the asset transferred but only means the full value of consideration received by the transferor in exchange of the capital asset transferred by him. In the case of a sale of full value of consideration is the full sale price actually paid. 'Full value' means the whole price without any deduction, whatsoever, and it cannot refer to the adequacy or inadequacy of the price bargained for. Nor does it hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e determined by the DVO in place of value of consideration disclosed by the assessee. The AO has failed to bring on record any evidence to prove that the assessee has received any consideration other than the consideration mentioned in the sale agreement. Under the provisions of s. 48 of the Act for computing the income from long-term capital gains on sale of the capital asset the full value of consideration is to be adopted as the starting point and thereafter deductions are to be allowed as per the provisions of the said section. We are in conformity with the order of the CIT(A) in holding that the full value of consideration in the present facts is to be adopted at Rs. 1.60 crores being the sale value of the transaction agreed between th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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