TaxTMI 
TaxTMI 
2016 (10) TMI 884
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....these appeals is identical in nature and is arising out of common set of facts, I heard both the appeals together and they are being disposed of by this common order, for the sake of convenience. 3. Facts relating to the issue are stated in brief. These assessees alongwith two other persons named Shri Krishna S. Panveli and Shri Jagdish S. Panveli jointly owned a land along with buildings located therein at Andheri West, Mumbai. They entered into deed of conveyance with M/s. Hetali Enterprises on 6.9.2007 for sale of the above said property. As per the conveyance deed, these four persons will receive a sum of Rs. 51 lakhs together and also four constructed flats at free of cost. Each of the co-owners were entitled to one flat each.....
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....iled by Shri Pratap S. Panveli did not find favour with the learned CIT(A). In the appeal filed by Shri Kailash S. Panveli, learned CIT(A) computed capital gain in accordance with computation made in the hands of Shri Pratap S. Panveli. In effect, learned CIT(A) enhanced income of Shri Kailash S. Panveli by Rs. 15.44 lakhs. Aggrieved by the orders passed by learned CIT(A) both the parties have filed these appeals before us. 7. I heard the parties on this issue. In my view, following issues arise for my consideration in these appeals:- (a) Whether the provisions of sec. 50C are applicable in these cases. (b) Whether these assessees are entitled to deduction u/s 54 of the Act on the cost of new flat acquired by them. 8. The ....
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....e than the stamp duty valuation and hence, in my view, the provisions of sec. 50C are not applicable in the instant cases. Accordingly I decide this issue in favour of the assessees. Accordingly, I set aside the orders passed by Ld CIT(A) on this issue and direct the AO not to apply the provisions of sec. 50C in the instant cases. 10. The next issue relates to the deduction claimed u/s 54 of the Act. The Ld CIT(A) considered the decision rendered by the Co-ordinate bench of Tribunal in the case of Shri Jatinder Kumar Madan (ITA No.6921/Mum/2010 dated 25-04-2012), wherein it was held that the acquisition of new flat under a development agreement in exchange of the old flat amounts to construction of new flat and the provisions of sec. 54 ....
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....contentions of the assessee that the capital gains should be considered as having been utilized in construction of new flat. Since the entire cost relating to new flats should be treated as having been paid by the assessee, in the facts and circumstances of the case, in my view, the decision rendered by Hon'ble jurisdictional Bombay High Court in the case of Mrs. Hilla J.B.Wadia (supra) is applicable to the present cases also. The Hon'ble Karnataka High Court has also taken the view in the case of C. Gopalaswamy (supra) that the utilization of capital gains in construction of residential house is the material factor in determining the eligibility for deduction u/s 54 of the Act. In the case of Muthuletchumi Janardhanan (supra), the Cochin b....