TaxTMI 
TaxTMI 
2015 (6) TMI 482
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.... ld. CIT(A) has erred in confirming the Long term capital gain of Rs. 45,65,220/- computed by the ld. AO on the basis of value of Rs. 49.95 lacs adopted by the stamp valuation authority, in terms of Section 50C of the I.T. Act, 1961, as against the Long term capital gain of Rs. 1,05,200/- computed by the assessee, on the basis of actual sale consideration of Rs. 35.00 lacs. (b) Without prejudice to Ground No. 2 (a) above and as per the judgment of Hon'ble Jaipur Tribunal in the case of Gyan Chand Batra vs. ITO (2010) 133 TTJ 482, for the purpose of exemption u/s 54 of the I.T. Act, 1961 the capital gain is to be determined by taking the actual sale consideration and not the deemed full value of consideration adopted u/s 50C of the I.....
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....d by the ld. CIT(A). 3.3 Now the assessee is before us; ld. Counsel for the assessee Shri B.L. Bhojwani, C.A. contends that the provisions of Section 54 are benevolent provisions whereby the persons who sells his house is given eligibility of exemption from capital gains if the consideration is invested in the purchase of new house. For the purpose of purchase of new house or for depositing the amount in capital gain account scheme, Section 54(2) refers only to time limit for return u/s 139 which includes the return filed u/s 139(1) of the Act as well as a belated return u/s 139(4) of the Act. Therefore, the purchase of new house or deposit in the capital gain account scheme can be made on or before due date of Section 139(4) to be eligi....
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....g as a result of the transfer of the capital asset the following amounts, namely :- (a) expenditure incurred wholly and exclusively in connection with such transfer; (b) the cost of acquisition of the asset and the cost of any improvement thereto; For computation of long term capital gains, Section 48 statutorily provides that what is taxable as capital gain is full value of the consideration received. It does not refer the consideration as deemed u/s 50C or fair market value, the amount of capital gain being defined u/s 48 has to be given the literal meaning. The wording being unambiguous Section 48 referring only to the sale consideration actually received, Section 50C being deeming fiction it cannot be applied to sec. 48 in the abs....
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....und No. 3, the ld. Counsel for the assessee contends that towards cost of construction of a room and boundary wall, the assessee had claimed an improvement cost of Rs. 30,000/-. The AO held that there was no mention of boundary wall in sale deed and adopted the value of Rs. 20,000/- for indexation purposes. It is pleaded that the assessee was an old man and to protect the property constructed a boundary wall for the security of its house. The cost of improvement as claimed may be allowed. 3.6 The ld. DR supported the orders of the lower authorities. 3.7 We have heard the rival contentions and perused the materials available on record. Apropos Ground No. 1 i.e. deposit of net consideration into capital gain account scheme on 31-032009,....