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TMI Blog2016 (9) TMI 1204X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in deleting the addition of Rs. 78,75,2511/- made by the A.O. vide order dated 28.12.2011 made u/s. 143(3) of the Act. 3. Rival contentions were heard at length. We have given a thoughtful consideration to the orders of the authorities below. In this case, the assessee has returned Long Term Capital Gain on sale of plot of land. The sale consideration was shown at Rs. 6.25 crores and the sale was made vide Banakhat dated 2.12.2008 and no final document of sale deed was executed. 4. From the sale consideration of Rs. 6.25 crores, the assessee has deducted original purchase price and the cost of improvement by appropriate indexation. 5. The A.O. was of the opinion that considering the rising market prices, the value of sale shown by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e reference was made to DVO for ascertaining the fair market value of the capital asset as on the date of sale. 9. Provision of Section 48 read as under:- "The income chargeable under the head "Capital Gain" shall be computed by deducting from the full value of the consideration received or accruing as result of transfer of the capital asset the following amounts, namely:- 1. Expenditure incurred wholly and exclusively in connection with such transfer. 2. The cost of acquisition of the asset and the cost of any improvement thereto." 10. A perusal of the aforementioned section shows that the main thrust of Section 48 is the full value of consideration received or accruing as a result of the transfer of the capital asset as reduced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is fortified by the decision of the Hon'ble High Court of Gujarat in the case of Gauranginiben S. Shodhan 367 ITR 238 wherein the Hon'ble High Court has held as under:- 11. Taking the question of ascertaining the fair market value on the date of sale, we notice that section 48, which is also contained in chapter IV of the Act pertains to method of computation of capital gain. A detailed mechanism has been provided for such computation of the income chargeable under the head "Capital Gains". It provides, inter alia, that the income chargeable under the Head "Capital Gains", shall be computed by deducting from the full value of the consideration received or accruing as a result of the transfer of the capital asset, the amounts mentioned th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before us by which Assessing Officer could have concluded that the consideration indicated in the sale-deed did not reflect the full consideration received by the assessee, it was not possible to assess the capital gain by estimating what would be the fair market value of the land through valuer's report 21. Decision of the Delhi High Court in the case of CIT v. Smt. Nilofer I. Singh [2009].309 ITR 233 was also brought to our notice; wherein, relying on the decision of George Henderson & Co. Ltd. (supra) and Gillanders Arbuthnot & Co. (supra), the Division Bench observed that expression "full value of consideration" used in Section 48 of the Act does not have reference to the market value but only to the consideration referred to in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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