TaxTMI 
TaxTMI 
2016 (5) TMI 874
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....objection is accordingly dismissed as not pressed. 2. As regards the Revenue's appeal, we find that the only issue is as to whether for allowing the exemption under section 54F of the Act, the deemed consideration under section 50C of the I.T. Act is to be taken into consideration or the consideration mentioned in the sale deed only is to be taken into consideration. 3. Brief facts of the case are that the assessee, an individual, deriving income from house property, capital gains and interest income, filed his return of income for the A.Y. 2010-2011 on 13.04.2011 declaring income of Rs. 5,19,930. During the assessment proceedings under section 143(3) of the Act, the A.O. observed that the assessee has sold his plot at Banjarahills for a ....
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....e assessee, on the other hand, supported the orders of the CIT(A) and also placed reliance upon the following decisions. (1) Raj Babbar vs. ITO (2013) 56 SOT 1 (ITAT) (Mum.) (2) Gouli Mahadevappa vs. ITO (2013) 356 ITR 90 (Kar.) 6. Having regard to the rival contentions and the material on record, we find that there is no dispute that the assessee has invested a sum of Rs. 1,37,00,000 in the construction of a new residential house at Saroornagar. It is also not disputed that the sale consideration under section 50C is to be adopted as the sale consideration for computation of the capital gain. The dispute only is whether the actual sale consideration mentioned in the sale deed or the deemed sale consideration under section 50C is to be a....
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....o bar benefits of exemption u/s 54F in respect of the capital gains relatable to the FVC as per the deemed fiction u/s 50C of the Act. Clause (a) of section 54F(I) specifies that If the cost of the new asset is not less than the net consideration in respect of the original asset, there is no chargeable capital gains u/s 45 of the Act. In the instant case, the cost of the new asset is Rs. 17,65,752/and 'net consideration' as defined is ' .. the full value of the consideration received or accruing as a result of the transfer of the capital asset as reduced by any expenditure incurred wholly and exclusively in connection with such transfer' i.e. Rs. 16,87,000 as per sec 50C and Rs. 8 lakhs as per the sale deed. The said clause ....
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....axman 855 (Bom.). 13. Thus, the cost of the new asset is Rs. 24 lakhs and 'net consideration' as defined is the full value of the consideration received or accruing as a result of the transfer of the capital asset as reduced by any expenditure incurred wholly and exclusively in connection with such transfer' i.e. Rs. 36 lakhs as per sec 50C and Rs. 20 lakhs as per the sale deed. Therefore, it is case where the cost of the new asset is not less than net consideration u/s. 50C and more than the net consideration as per the sale deed. Therefore, the decision of the Tribunal in this case is distinguishable on facts. Therefore, clause (a) of section 54F(1) of the Act does not apply." 6.1. Further, the Hon'ble Karnataka High Court....