Guidance Value of Land or Building Should be used to Determine Consideration Where Transfer Value of Capital Asset is not determinable: ITAT

The Income Tax Appellate Tribunal (ITAT) ruled that when the transfer value of a capital asset, such as land or a building, cannot be determined, the guidance value or market rate of the property should be used for tax purposes. This judgment addresses the ambiguity around valuing immovable assets where actual transaction prices may be unavailable. The ruling clarifies how property valuations should be approached in such cases, ensuring fairness in capital gains taxation and compliance with Section 50C of the Income Tax Act.